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This video tutorial from Cohere AI explains word and sentence embeddings, which are essential for large language models. These embeddings enable computers to understand and process language by converting words and sentences into numerical representations. Each word is associated with a list of numbers, as are sentences, in a manner that captures their meanings. This process is performed by a neural network, which analyzes context; words appearing together are brought closer in the numerical space. This method allows for meaningful relationships between words and sentences, resulting in impressive outcomes for language understanding.