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This video tutorial by Cohere AI discusses word and sentence embeddings, which are essential for large language models. The main idea is to enable computers to understand and process language, as computers can only work with numbers. Word embeddings convert words into numerical representations, and sentence embeddings do the same for sentences, ensuring that the numerical associations are meaningful. This process is not manually conducted by humans; instead, it is performed by complex neural network models that analyze context. When words or sentences appear together in similar contexts, their numerical representations are positioned closer together, leading to significant advancements in language understanding.