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This video tutorial from Cohere AI discusses the concepts of word and sentence embeddings, which are essential in large language models. These embeddings help translate words and sentences into numerical representations that computers can process. Words are associated with lists of numbers in such a way that captures their meanings, achieved through a neural network that analyzes context. When two words or sentences appear in similar contexts, their numerical representations become closer, allowing the model to understand language more effectively. This automated process results in sophisticated language understanding without human intervention.