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This video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. The key concept is that language, composed of words, must be transformed into a numerical format for computers to process. Word embeddings convert words to numerical lists, while sentence embeddings do the same for sentences, ensuring meaningful associations. This process is not manually done; rather, it is executed by complex neural networks that analyze context. Words appearing together in similar contexts are brought closer in the numerical space, ultimately leading to impressive outcomes in language understanding and processing.