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This video tutorial from Cohere AI explains word and sentence embeddings, which are essential for large language models. Since computers can only process numbers, word embeddings convert words into numerical representations, associating each word with a list of numbers. Sentence embeddings do the same for sentences, creating meaningful numerical associations. This process isn't done manually by humans; instead, it relies on complex models, typically neural networks, that analyze context. When two words frequently appear together, the model brings their numerical representations closer together. The tutorial emphasizes the impressive results achieved through this method in language processing.