What is Embedding?
A list of numbers that represents the meaning of text so software can compare it.
Formal Definition
An embedding is a dense numeric vector that encodes the meaning of a piece of text, image, or other data, positioning similar items near each other in a high-dimensional space. Embeddings power similarity, clustering, and search. For market work, they let a system group related news stories or match a query to relevant filings by meaning rather than exact words.
In Simple Terms
It is a way of turning words into numbers that capture meaning, so a computer can tell that two differently worded headlines are actually about the same thing.
Example
Two news items, one saying a chipmaker raised guidance and another saying it lifted its forecast, sit close together as embeddings because they mean nearly the same thing.