Build RAG Chatbot with Haystack, Haystack In-memory store, Mistral Ministral 8B, and OpenAI text-embedding-3-small

Introduction to RAG

Retrieval-Augmented Generation (RAG) is a game-changer for GenAI applications, especially in conversational AI. It combines the power of pre-trained large language models (LLMs) like OpenAI’s GPT with external knowledge sources stored in vector databases such as Milvus and Zilliz Cloud, allowing for more accurate, contextually relevant, and up-to-date response generation. A RAG pipeline usually consists of four basic components: a vector database, an embedding model, an LLM, and a framework.

Key Components We'll Use for This RAG Chatbot

This tutorial shows you how to build a simple RAG chatbot in Python using the following components:

Haystack: An open-source Python framework designed for building production-ready NLP applications, particularly question answering and semantic search systems. Haystack excels at retrieving information from large document collections through its modular architecture that combines retrieval and reader components. Ideal for developers creating search applications, chatbots, and knowledge management systems that require efficient document processing and accurate information extraction from unstructured text.
Haystack in-memory store: a very simple, in-memory document store with no extra services or dependencies. It is great for experimenting with Haystack, and we do not recommend using it for production. If you want a much more scalable solution for your apps or even enterprise projects, we recommend using Zilliz Cloud, which is a fully managed vector database service built on the open-source Milvusand offers a free tier supporting up to 1 million vectors.)
Mistral Ministral 8B: A compact, high-efficiency language model optimized for scalable natural language processing. It excels in rapid text generation, multilingual tasks, and context-aware reasoning while maintaining low computational demands. Ideal for real-time chatbots, content summarization, and edge-device deployment where speed and resource efficiency are critical.
OpenAI text-embedding-3-small: Designed to generate dense vector representations of text, this model excels in efficiency and cost-effectiveness, optimized for speed and low resource usage. It delivers competitive performance in semantic similarity, retrieval, and clustering tasks, making it ideal for large-scale applications like search engines, recommendation systems, and text classification where balancing accuracy with computational cost is crucial.

By the end of this tutorial, you’ll have a functional chatbot capable of answering questions based on a custom knowledge base.

Note: Since we may use proprietary models in our tutorials, make sure you have the required API key beforehand.

Step 1: Install and Set Up Haystack

import os
import requests

from haystack import Pipeline
from haystack.components.converters import MarkdownToDocument

from haystack.components.preprocessors import DocumentSplitter
from haystack.components.writers import DocumentWriter

Step 2: Install and Set Up Mistral Ministral 8B

To use Mistral models, you need first to get a Mistral API key. You can write this key in:

The api_key init parameter using Secret API
The MISTRAL_API_KEY environment variable (recommended)

Now, after you get the API key, let's install the Install the mistral-haystack package.

pip install mistral-haystack

from haystack_integrations.components.generators.mistral import MistralChatGenerator
from haystack.components.generators.utils import print_streaming_chunk
from haystack.dataclasses import ChatMessage
from haystack.utils import Secret

generator = MistralChatGenerator(api_key=Secret.from_env_var("MISTRAL_API_KEY"), streaming_callback=print_streaming_chunk, model='ministral-8b-latest')

Step 3: Install and Set Up OpenAI text-embedding-3-small

Text documents often come with a set of metadata. If they are distinctive and semantically meaningful, you can embed them along with the text of the document to improve retrieval.

from haystack import Document
from haystack.components.embedders import OpenAIDocumentEmbedder

doc = Document(content="some text",meta={"title": "relevant title", "page number": 18})

document_embedder = OpenAIDocumentEmbedder(meta_fields_to_embed=["title"])

docs_w_embeddings = embedder.run(documents=[doc])["documents"]

Now let's install and set up the model.

from haystack import Document
from haystack.components.embedders import OpenAIDocumentEmbedder
from haystack.components.embedders import OpenAITextEmbedder

text_embedder = OpenAITextEmbedder(api_key=Secret.from_token("<your-api-key>"), model="text-embedding-3-small")
document_embedder = OpenAIDocumentEmbedder(api_key=Secret.from_token("<your-api-key>"), model="text-embedding-3-small")

Step 4: Install and Set Up Haystack In-memory store

from haystack.document_stores.in_memory import InMemoryDocumentStore
from haystack.components.retrievers import InMemoryEmbeddingRetriever

document_store = InMemoryDocumentStore()
retriever=InMemoryEmbeddingRetriever(document_store=document_store))

Step 5: Build a RAG Chatbot

Now that you’ve set up all components, let’s start to build a simple chatbot. We’ll use the Milvus introduction doc as a private knowledge base. You can replace it your own dataset to customize your RAG chatbot.

url = 'https://raw.githubusercontent.com/milvus-io/milvus-docs/refs/heads/v2.5.x/site/en/about/overview.md'
example_file = 'example_file.md'
response = requests.get(url)
with open(example_file, 'wb') as f:
    f.write(response.content)
file_paths = [example_file]  # You can replace it with your own file paths.

indexing_pipeline = Pipeline()
indexing_pipeline.add_component("converter", MarkdownToDocument())
indexing_pipeline.add_component("splitter", DocumentSplitter(split_by="sentence", split_length=2))
indexing_pipeline.add_component("embedder", document_embedder)
indexing_pipeline.add_component("writer", DocumentWriter(document_store))
indexing_pipeline.connect("converter", "splitter")
indexing_pipeline.connect("splitter", "embedder")
indexing_pipeline.connect("embedder", "writer")
indexing_pipeline.run({"converter": {"sources": file_paths}})

# print("Number of documents:", document_store.count_documents())
  
question = "What is Milvus?"  # You can replace it with your own question.

retrieval_pipeline = Pipeline()
retrieval_pipeline.add_component("embedder", text_embedder)
retrieval_pipeline.add_component("retriever", retriever)
retrieval_pipeline.connect("embedder", "retriever")

retrieval_results = retrieval_pipeline.run({"embedder": {"text": question}})

# for doc in retrieval_results["retriever"]["documents"]:
#     print(doc.content)
#     print("-" * 10)

from haystack.utils import Secret
from haystack.components.builders import PromptBuilder

retriever=InMemoryEmbeddingRetriever(document_store=document_store) 
 text_embedder = OpenAITextEmbedder(api_key=Secret.from_token("<your-api-key>"), model="text-embedding-3-small")

prompt_template = """Answer the following query based on the provided context. If the context does
                     not include an answer, reply with 'I don't know'.\n
                     Query: {{query}}
                     Documents:
                     {% for doc in documents %}
                        {{ doc.content }}
                     {% endfor %}
                     Answer: 
                  """

rag_pipeline = Pipeline()
rag_pipeline.add_component("text_embedder", text_embedder)
rag_pipeline.add_component("retriever", retriever)
rag_pipeline.add_component("prompt_builder", PromptBuilder(template=prompt_template))
rag_pipeline.add_component("generator", generator)
rag_pipeline.connect("text_embedder.embedding", "retriever.query_embedding")
rag_pipeline.connect("retriever.documents", "prompt_builder.documents")
rag_pipeline.connect("prompt_builder", "generator")

results = rag_pipeline.run({"text_embedder": {"text": question}, "prompt_builder": {"query": question},})
print('RAG answer:\n', results["generator"]["replies"][0])

Optimization Tips

As you build your RAG system, optimization is key to ensuring peak performance and efficiency. While setting up the components is an essential first step, fine-tuning each one will help you create a solution that works even better and scales seamlessly. In this section, we’ll share some practical tips for optimizing all these components, giving you the edge to build smarter, faster, and more responsive RAG applications.

Haystack optimization tips

To optimize Haystack in a RAG setup, ensure you use an efficient retriever like FAISS or Milvus for scalable and fast similarity searches. Fine-tune your document store settings, such as indexing strategies and storage backends, to balance speed and accuracy. Use batch processing for embedding generation to reduce latency and optimize API calls. Leverage Haystack's pipeline caching to avoid redundant computations, especially for frequently queried documents. Tune your reader model by selecting a lightweight yet accurate transformer-based model like DistilBERT to speed up response times. Implement query rewriting or filtering techniques to enhance retrieval quality, ensuring the most relevant documents are retrieved for generation. Finally, monitor system performance with Haystack’s built-in evaluation tools to iteratively refine your setup based on real-world query performance.

Haystack in-memory store optimization tips

Haystack in-memory store is just a very simple, in-memory document store with no extra services or dependencies. We recommend that you just experiment it with RAG pipeline within your Haystack framework, and we do not recommend using it for production. If you want a much more scalable solution for your apps or even enterprise projects, we recommend using Zilliz Cloud, which is a fully managed vector database service built on the open-source Milvusand offers a free tier supporting up to 1 million vectors

Mistral Ministral 8B optimization tips

To optimize Mistral Ministral 8B in RAG setups, ensure input prompts are tightly formatted with clear context-question separation using [INST] tags. Use smaller retrieval chunks (256-512 tokens) to reduce noise and improve relevance. Adjust the temperature (0.1-0.3) for deterministic, fact-focused outputs. Employ a hybrid retrieval approach (dense + sparse methods) to balance precision and recall. Prune retrieved documents with cross-encoder re-rankers before feeding to the model. Limit input context length to avoid truncation, and fine-tune the model on domain-specific data for better alignment. Enable flash attention and quantization (e.g., 4-bit) to reduce latency and memory usage.

OpenAI text-embedding-3-small optimization tips

Optimize input text by truncating or chunking to stay within the 8191-token limit while preserving semantic context. Normalize embeddings to unit vectors to improve cosine similarity accuracy. Batch embedding requests to reduce API calls and latency. Experiment with dimensionality reduction (e.g., 256-dim) to balance performance and storage costs. Preprocess text by removing redundant or noisy content and standardizing formats (lowercase, trimming whitespace). Cache frequent or static embeddings to avoid redundant computations. Monitor retrieval quality via metrics like recall@k and adjust chunking strategies or hybrid retrieval methods if needed. Fine-tune temperature and top-k parameters during generation to align with embedding outputs.

By implementing these tips across your components, you'll be able to enhance the performance and functionality of your RAG system, ensuring it’s optimized for both speed and accuracy. Keep testing, iterating, and refining your setup to stay ahead in the ever-evolving world of AI development.

RAG Cost Calculator: A Free Tool to Calculate Your Cost in Seconds

Estimating the cost of a Retrieval-Augmented Generation (RAG) pipeline involves analyzing expenses across vector storage, compute resources, and API usage. Key cost drivers include vector database queries, embedding generation, and LLM inference.

RAG Cost Calculator is a free tool that quickly estimates the cost of building a RAG pipeline, including chunking, embedding, vector storage/search, and LLM generation. It also helps you identify cost-saving opportunities and achieve up to 10x cost reduction on vector databases with the serverless option.

Calculate your RAG cost now.

Calculate your RAG cost

What Have You Learned?

By diving into this tutorial, you’ve unlocked the magic of building a RAG system from the ground up! You now understand how Haystack acts as the backbone, seamlessly connecting your pipeline components while giving you the flexibility to experiment. The Haystack In-Memory Store stepped in as your lightweight vector database, handling embeddings with speed and simplicity—perfect for prototyping without heavy infrastructure. You saw how OpenAI’s text-embedding-3-small transformed raw text into rich numerical representations, capturing meaning in ways that let your system “understand” context. Then came Mistral’s Mixtral 8B, the powerhouse LLM that took those retrieved snippets and crafted coherent, precise answers, proving that open-source models can rival proprietary ones in quality and creativity. Together, these tools showed you how to ingest data, retrieve relevant info, and generate responses—all while keeping costs low and performance high.

But wait, there’s more! You also picked up pro tips for optimizing your RAG pipeline, like tuning chunk sizes and experimenting with hybrid search strategies to balance speed and accuracy. The free RAG cost calculator you explored is a game-changer, letting you estimate expenses upfront and make smarter decisions as you scale. Imagine the possibilities now: chatbots that answer like experts, research assistants that synthesize data instantly, or even custom tools tailored to your niche. You’ve got the blueprint—and the tools—to turn ideas into reality. So why wait? Start building, tweak with confidence, and let your creativity run wild. The future of intelligent applications is in your hands, and every line of code you write brings it closer. Go ahead—innovate, iterate, and inspire the world with what you create next! 🚀

Further Resources

🌟 In addition to this RAG tutorial, unleash your full potential with these incredible resources to level up your RAG skills.

How to Build a Multimodal RAG | Documentation
How to Enhance the Performance of Your RAG Pipeline
Graph RAG with Milvus | Documentation
How to Evaluate RAG Applications - Zilliz Learn
Generative AI Resource Hub | Zilliz

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