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The video tutorial discusses word and sentence embeddings, which are essential for large language models. These embeddings help computers understand and process language by converting words and sentences into numerical representations. Each word and sentence is associated with a list of numbers that reflects its meaning, achieved through a computer, specifically using complex models like neural networks. Rather than humans manually assigning values, the model analyzes context: if two words frequently appear together, their numerical representations are brought closer. This methodology yields impressive results in language processing.