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This video tutorial by Cohere AI explains word and sentence embeddings, which are essential for large language models. Language models aim to enable computers to understand and process language, which consists of words, while computers work with numbers. Word embeddings convert words into numerical representations, and sentence embeddings do the same for sentences. This process is automated by a neural network that analyzes context; when two words frequently appear together, their numerical representations are increasingly correlated. This method, driven by computational models rather than human interpretation, yields impressive results in language processing.