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This video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. Language models aim to help computers understand and process language, but since computers work with numbers, embeddings convert words and sentences into numerical representations. Each word is linked to a numerical list, and similarly for sentences. This process isn't manually done but is performed by a computer, typically using a neural network that analyzes context. Words appearing together in the same context are moved closer together in the numerical space, leading to meaningful relationships and impressive results in understanding language.