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This video tutorial by Cohere AI explains word and sentence embeddings, which are essential for large language models. These embeddings convert words and sentences into numerical representations that computers can process, as computers operate with numbers rather than language. Each word is linked to a list of numbers, and similarly for sentences, in a meaningful way. This process is automated and not human-driven; it employs complex neural networks that analyze context. When two words frequently appear together, their numerical representations are adjusted to be closer, achieving more intuitive relationships. The result is effective language understanding by computers.