Matrix factorization is a way of splitting a large matrix (a table with rows and columns) into two or more smaller matrices. It is like taking a big square and cutting it into smaller pieces. The pieces can then be used to better understand how the information in the original matrix is related. For example, if you have a matrix of movie ratings, you can use matrix factorization to see which movies are similar to each other and to understand why people liked or disliked a certain movie.