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The video discusses word and sentence embeddings, which are essential for large language models. These embeddings help computers understand language by converting words into numerical representations, enabling processing. Each word and sentence is associated with a list of numbers, created not by human intervention but through complex neural networks. These models analyze context, bringing words or sentences that appear together closer together in their numerical representation. This method allows for nuanced understanding and enhances the effectiveness of language models, leading to impressive results in language processing.
