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Building the GenAI application layer

Rethinking RAG: The Hidden Costs and Optimization Challenges of Retrieval-Augmented Generation As AI continues to evolve, Retrieval-Augmented Generation (RAG) has become a cornerstone of many production systems. But are we overlooking critical aspects of its implementation? Here are some thought-provoking insights: The Embedding Paradox: • Cheap to compute, expensive to store • 1 billion embeddings can require 5.5TB of storage • Monthly storage costs can reach $14,000+ for high-dimensional embeddings The Quantization Revolution: • Binary quantization can reduce storage costs by 32x • Only 5% performance reduction in some cases • Potential for 25x speed increase in retrieval Model Size Matters: • Larger embedding models are more resilient to aggressive quantization • Parallels the behavior of quantized LLMs The Open-Source Advantage: • Vector stores like Qdrant now support scalar and binary quantization • Up to 99% accuracy preservation with 4x compression for scalar quantization The Tradeoff Triangle: • Balancing accuracy, speed, and storage costs • No one-size-fits-all solution Key Questions: • Are we overengineering our RAG systems? • Could simpler, quantized models outperform complex ones in production? • How will advancements in embedding compression reshape AI infrastructure costs? As we push the boundaries of AI, it's crucial to look beyond raw performance and consider the full spectrum of tradeoffs in our systems. What's your take on the future of RAG optimization? s/o to Prompt Engineering https://lnkd.in/d5uKryzQ

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