In this tutorial, learn how to set up serverless functions with Netlify and use Deepgram's Node.js SDK for transcriptions of hosted files and local files. The process involves installing necessary software, setting up a Netlify project, creating serverless functions, adding your Deepgram API key as an environment variable, testing the functions locally, and deploying them to production. This approach is suitable for scale, but not recommended for live transcription due to its nature of spinning up and down quickly.