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This lecture covers the concepts of interpreters and virtual machines, explaining how interpreters execute programs represented as raw text or abstract syntax trees, and how virtual machines simulate real processors to manage memory and input/output. It discusses the advantages of interpreters, the differences between text-based and tree-based interpreters, and the reasons for using virtual machines. The lecture also delves into the implementation of virtual machines, the types of virtual machines, and optimization techniques such as threaded code and top-of-stack caching.