Solids consist of 10 22 ±10 23 particles per cubic centimetre, interacting through in®nite-range Coulomb interactions. The linear response of a solid to a weak external perturbation is well described by the concept of non-interacting`quasiparticles' ®rst introduced by Landau. But interactions between quasiparticles can be substantial in dense systems. For example, studies over the past decade have shown that Coulomb correlations between quasiparticles dominate the nonlinear optical response of semiconductors, in marked contrast to the behaviour of atomic systems. These Coulomb correlations and other many-body interactions are important not only for semiconductors, but also for all condensed-matter systems.O ne of the most fascinating properties of quantum mechanical systems is that they can be in entangled states, that is, a coherent superposition of eigenstates unknown in classical systems. Entangled states have been observed in atomic physics, but they remain elusive in condensed matter. The primary dif®culty is that they survive only as long as the coherence is maintained, and numerous processes conspire to produce decoherence, dephasing and relaxation on an extremely short timescale (,10 -12 s) in condensed matter, which is typically composed of 10 22 ±10 23 particles cmthat interact through the in®nite-range Coulomb force. The complexity of the problem makes any theoretical approach extremely dif®cult. About ®ve decades ago, Landau proposed that real particles, strongly interacting among themselves but evolving in the real vacuum, be mapped onto`quasiparticles' . The quasiparticles arè dressed' by a part of the interaction, and are relatively long-lived excitations of the many-body system evolving in a`new vacuum' that consists of the`rest' of the many-body system and the part of the Coulomb interaction not accounted for in the quasiparticles. The quasiparticles are complex objects (Cooper pairs in a superconductor, excitons in a semiconductor, and so forth), and the new vacuum itself can be structured (it can have an antiferromagnetic order in the copper oxides) and dynamical (it can sustain phonons and magnons). For many solids, the concept of quasiparticles has been very useful for describing the ground state and small departures from it, that is, the most basic excitation and the linear response to weak external perturbations. However, the part of the Coulomb forces not accounted for in the formation of quasiparticles leads to interactions between these quasiparticles, inducing nonlinearities and destroying their phase coherence. Scientists interested in the linear response of a many-body system like to call these interactions`residual' . They are, however, not small, as shown below. They are residual only in the sense that we do not know (yet) how to treat them correctly. Understanding the in¯u-ence of these many-body interactions and Coulomb correlations is one of the central challenges of condensed-matter physics. Semiconductors form an ideal laboratory for quantitatively investigating the role of Co...