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This video tutorial from Cohere AI discusses word and sentence embeddings, crucial components of large language models that enable computers to process language. Since computers only handle numbers, word embeddings translate words into numerical representations, while sentence embeddings do the same for sentences. This transformation is not manually created by humans; instead, it is achieved through a neural network that analyzes context. When two words appear together in similar contexts, their numerical representations are adjusted to be closer. This process allows for significant advancements in the understanding and generation of language by computers, leading to impressive results in language processing tasks.