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This video tutorial from Cohere AI discusses word and sentence embeddings, which are fundamental to large language models. Word embeddings convert words into numerical representations, enabling computers to process language. Similarly, sentence embeddings provide a numerical representation for sentences. This conversion isn't performed manually; instead, a neural network analyzes the context in which words and sentences appear together, drawing them closer in the numeric space based on their co-occurrences. This process ultimately leads to effective communication and understanding of language by machines, producing impressive results.