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This video tutorial from Cohere AI explains word and sentence embeddings, which are fundamental to large language models. Language models aim to enable computers to understand and process human language, which consists of words, while computers only work with numbers. Word embeddings convert words into numerical representations, associating each word with a list of numbers, and sentence embeddings do the same for sentences. This process is performed by neural networks that consider context; when two words appear together frequently, their numerical representations are adjusted to be closer in value. This approach leads to effective language processing and notable outcomes.