Build RAG Chatbot with Haystack, Haystack In-memory store, Mixtral 8x7B, and HuggingFace all-mpnet-base-v2

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.)
Mixtral 8x7B: A sparse mixture-of-experts (MoE) model with eight 7B parameter networks, designed for efficient, high-performance NLP tasks. Excels in text generation, reasoning, and multilingual support while minimizing computational costs. Ideal for scalable enterprise applications, real-time chatbots, and multi-task environments requiring optimized resource utilization and versatile AI capabilities.
HuggingFace all-mpnet-base-v2: A versatile sentence-transformers model optimized for generating high-quality semantic embeddings. Leveraging MPNet's masked and permuted pretraining, it excels in capturing nuanced text semantics, offering robust performance in multilingual and domain-specific tasks. Ideal for semantic search, text clustering, similarity comparison, and information retrieval due to its efficiency and accuracy.

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 Mixtral 8x7B

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='open-mixtral-8x7b')

Step 3: Install and Set Up HuggingFace all-mpnet-base-v2

Haystack'sHuggingFaceAPITextEmbedder can be used to embed strings with different Hugging Face APIs:

The component uses a HF_API_TOKEN environment variable by default. Otherwise, you can pass a Hugging Face API token at initialization with token – see code examples below. The token is needed:

If you use the Serverless Inference API, or
If you use Inference Endpoints.

Here, in this tutorial, we'll use the Free Serverless Inference API. Let's install and set up the model.

To use this API, you need a free Hugging Face token. The Embedder expects the model in api_params.

from haystack.components.embedders import HuggingFaceAPITextEmbedder
from haystack.utils import Secret
from haystack.components.embedders import HuggingFaceAPIDocumentEmbedder
from haystack.dataclasses import Document

text_embedder = HuggingFaceAPITextEmbedder(api_type="serverless_inference_api",
                                           api_params={"model": "sentence-transformers/all-mpnet-base-v2"},
                                           token=Secret.from_token("<your-api-key>"))
document_embedder = HuggingFaceAPIDocumentEmbedder(api_type="serverless_inference_api",
                                              api_params={"model": "sentence-transformers/all-mpnet-base-v2"},
                                              token=Secret.from_token("<your-api-key>"))

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 = HuggingFaceAPITextEmbedder(api_type="serverless_inference_api",
                                           api_params={"model": "sentence-transformers/all-mpnet-base-v2"},
                                           token=Secret.from_token("<your-api-key>"))

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

Mixtral 8x7B optimization tips

To optimize Mixtral 8x7B in RAG, prioritize efficient context retrieval by fine-tuning chunk size and overlap for balanced relevance and latency. Use sparse attention configurations to reduce computational overhead, and enable tensor parallelism to leverage its mixture-of-experts architecture. Quantize the model to 4-bit precision (e.g., via GPTQ) for faster inference with minimal accuracy loss. Pre-filter retrieved documents to remove noise, and cache frequent query embeddings. Adjust temperature (0.2-0.5) and max tokens to balance creativity and focus. Profile expert routing to ensure balanced workload distribution across GPU resources.

HuggingFace all-mpnet-base-v2 optimization tips

To optimize the all-mpnet-base-v2 model in a RAG setup, preprocess input text by removing noise, truncating to the 384-token limit, and splitting documents into contextually coherent chunks. Use cosine similarity for retrieval, as the model is fine-tuned for this metric. Batch embedding generation improves throughput, while leveraging GPU acceleration reduces latency. Fine-tune the model on domain-specific data for better relevance. Index embeddings with FAISS or HNSW for efficient nearest-neighbor searches, and experiment with chunk overlap to balance context retention and redundancy.

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 learned how the Haystack framework acts as the backbone, seamlessly connecting components to create a streamlined pipeline. The Haystack In-Memory Store became your go-to vector database, handling lightning-fast retrieval of embeddings generated by the HuggingFace all-mpnet-base-v2 model, which transformed text into rich numerical representations. Then, Mixtral 8x7B stepped in as your powerhouse LLM, synthesizing retrieved data into coherent, context-aware answers. Together, these tools showed you how to bridge the gap between raw data and intelligent responses—proving that RAG isn’t just a concept but a tangible, buildable solution. You even picked up pro tips for optimizing performance, like tweaking chunk sizes and balancing latency with accuracy, plus a nifty free RAG cost calculator to keep your projects budget-friendly and efficient.

Now that you’ve seen how these pieces fit together, imagine the possibilities! You’re equipped to craft RAG applications that answer questions, summarize content, or even power chatbots—all while keeping costs in check and performance sharp. The best part? You’ve got the tools to iterate, experiment, and innovate. Whether you’re refining your pipeline, exploring new datasets, or scaling to handle millions of queries, the sky’s the limit. So fire up your code editor, play with those parameters, and start building. Your next breakthrough is just a few lines of code away—let’s make it happen! 🚀

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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