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This video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. These embeddings enable computers to process language by converting words and sentences into numerical representations. Each word and sentence is associated with a list of numbers that makes sense contextually, but this association is not manually created by humans; instead, it is generated by complex neural network models. The models analyze the context in which words appear together, bringing similar words and sentences closer in their numerical representation. Ultimately, this process results in effective language understanding by computers.