Seq2Seq models revolutionized machine translation with their encoder-decoder architecture, enabling end-to-end learning of the translation process. These models map input sequences to output sequences, using an attention mechanism to focus on different parts of the input during decoding. Key concepts include the encoder, decoder, attention mechanism, and evaluation metrics like BLEU score. Seq2Seq models have applications beyond translation, including text summarization and dialogue generation. Challenges include data scarcity, rare word handling, and ensuring output coherence and fairness.