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The video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. Language models aim to help computers understand and process human language, which consists of words, while computers operate using numbers. Word embeddings convert words into numerical representations, and sentence embeddings do the same for sentences, aligning their meanings. This process is conducted by a computer, typically through a neural network, which analyzes context. When two words appear together in the same context, the model positions their numerical representations closer to each other, resulting in effective language understanding. The overall method yields impressive outcomes.