This tool provides an efficient implementation of the continuous bag-of-words and skip-gram architectures for computing vector representations of words. These representations can be subsequently used in many natural language processing applications and for further research.
Word2vec uses distributed representations of text to capture similarities among concepts. For example, it understands that Paris and France are related the same way Berlin and Germany are (capital and country), and not the same way Madrid and Italy are.
This has a very broad range of potential applications: knowledge representation and extraction; machine translation; question answering; conversational systems; and many others.
The original paper by Mikolov et. al. can be found on arxiv.