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The video tutorial from Cohere AI explains word and sentence embeddings, which are essential for large language models. These embeddings facilitate a computer's understanding of language by converting words into numerical representations. Each word and sentence is associated with a list of numbers based on context. This process is not manually done; instead, a neural network analyzes co-occurrences of words in context to create these associations. As a result, words that frequently appear together are represented numerically in proximity, yielding effective outcomes in language processing. The video highlights the significance of these embeddings in enabling computers to comprehend and process language effectively.
