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The video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. Language models aim to help computers understand language, but since computers process numbers, embeddings convert words and sentences into numerical representations. Each word and sentence is associated with a list of numbers that reflect their meanings. This process is automated by complex models, typically neural networks, which analyze context. Words that appear together tend to be represented by similar numerical values, leading to meaningful associations in embeddings. The tutorial emphasizes the effectiveness of this method in achieving impressive results in language processing.