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This video tutorial from Cohere AI explains word and sentence embeddings, essential components of large language models. Language models aim to enable computers to understand and process language, which consists of words, while computers operate using numbers. Embeddings transform words and sentences into numerical representations, associating each word and sentence with lists of numbers in a meaningful way. This process is not manually done; instead, it involves complex neural networks that analyze context. When words or sentences appear together in similar contexts, their numerical representations are adjusted to be closer, resulting in effective and insightful outcomes for language processing.