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This video tutorial by Cohere AI discusses word and sentence embeddings, which are essential for large language models. These embeddings enable computers to process language, translating words and sentences into numerical representations. Word embeddings create a numerical list for each word, while sentence embeddings do the same for sentences, ensuring contextual relevance. This process is not manually done; instead, it is achieved through complex neural networks that analyze context. When two words appear in similar contexts, their numerical representations become closer, facilitating effective language comprehension and yielding impressive results.