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This video tutorial by Cohere AI explains word and sentence embeddings, which are fundamental to large language models. These embeddings allow computers to understand and process language by converting words and sentences into numerical representations. Instead of humans manually associating numbers with words, a neural network analyzes the context in which words appear together to generate these embeddings. As words or sentences frequently occur in similar contexts, their numerical representations become closer together in the embedding space, leading to effective language processing. This method ultimately yields impressive results in understanding and generating human language.