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The video tutorial from Cohere AI discusses word and sentence embeddings, crucial components of large language models. It explains that language models aim to help computers understand language, which is composed of words, while computers only process numbers. Word embeddings convert words into lists of numbers, and sentence embeddings do the same for sentences. This process is performed by a computer, typically using a neural network, which analyzes context to position similar words or sentences closer together in the numerical space. Ultimately, this method yields impressive results in language processing.