Build RAG Chatbot with Haystack, OpenSearch, Mistral Large, and Ollama snowflake-arctic-embed

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.
OpenSearch: An open-source search and analytics suite derived from Elasticsearch. It offers robust full-text search and real-time analytics, with vector search available as an add-on for similarity-based queries, extending its capabilities to handle high-dimensional data. Since it is just a vector search add-on rather than a purpose-built vector database, it lacks scalability and availability and many other advanced features required by enterprise-level applications. Therefore, if you prefer a much more scalable solution or hate to manage your own infrastructure, we recommend using Zilliz Cloud, which is a fully managed vector database service built on the open-source Milvus and offers a free tier supporting up to 1 million vectors.)
Mistral Large: A state-of-the-art language model optimized for advanced reasoning, multilingual tasks, and high-stakes decision-making. It excels in code generation, complex analysis, and cross-lingual understanding, offering scalability, efficiency, and high accuracy for enterprise solutions, AI-driven research, and global customer interaction platforms.
Ollama Snowflake-Arctic-Embed: A high-performance embedding model optimized for semantic understanding and retrieval tasks. It excels in generating dense vector representations for text, offering robust accuracy and scalability. Ideal for enterprise applications like semantic search, recommendation systems, and data clustering, particularly in environments leveraging Snowflake’s data ecosystem for seamless integration and large-scale analytics.

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 Large

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='mistral-large-latest')

Step 3: Install and Set Up Ollama snowflake-arctic-embed

pip install ollama-haystack

Make sure that you have a running Ollama model (either through a docker container, or locally hosted). No other configuration is necessary as Ollama has the embedding API built in.

from haystack import Document
from haystack_integrations.components.embedders.ollama import OllamaDocumentEmbedder
from haystack_integrations.components.embedders.ollama import OllamaTextEmbedder

text_embedder = OllamaTextEmbedder(model="snowflake-arctic-embed")
document_embedder = OllamaDocumentEmbedder(model="snowflake-arctic-embed")

Step 4: Install and Set Up OpenSearch

If you have Docker set up, we recommend pulling the Docker image and running it.

docker pull opensearchproject/opensearch:2.11.0
docker run -p 9200:9200 -p 9600:9600 -e "discovery.type=single-node" -e "ES_JAVA_OPTS=-Xms1024m -Xmx1024m" opensearchproject/opensearch:2.11.0

Once you have a running OpenSearch instance, install the opensearch-haystack integration:

pip install opensearch-haystack

from haystack_integrations.components.retrievers.opensearch  import OpenSearchEmbeddingRetriever
from haystack_integrations.document_stores.opensearch import OpenSearchDocumentStore

document_store = OpenSearchDocumentStore(hosts="http://localhost:9200", use_ssl=True,
verify_certs=False, http_auth=("admin", "admin"))
retriever = OpenSearchEmbeddingRetriever(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 = OpenSearchEmbeddingRetriever(document_store=document_store) 
 text_embedder = OllamaTextEmbedder(model="snowflake-arctic-embed")

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.

OpenSearch optimization tips

To optimize OpenSearch in a Retrieval-Augmented Generation (RAG) setup, fine-tune indexing by enabling efficient mappings and reducing unnecessary stored fields. Use HNSW for vector search to speed up similarity queries while balancing recall and latency with appropriate ef_search and ef_construction values. Leverage shard and replica settings to distribute load effectively, and enable caching for frequent queries. Optimize text-based retrieval with BM25 tuning and custom analyzers for better relevance. Regularly monitor cluster health, index size, and query performance using OpenSearch Dashboards and adjust configurations accordingly.

Mistral Large optimization tips

To enhance Mistral Large’s performance in RAG systems, prioritize efficient context handling by truncating or summarizing retrieved documents to fit its token limit while retaining key information. Fine-tune prompts to explicitly guide the model to reference retrieved content, using phrases like “based on the provided context.” Adjust temperature settings (lower for factuality, higher for creativity) and max token limits to balance output quality and length. Implement caching for frequent queries, and use parallel processing to speed up document retrieval. Regularly evaluate retrieval relevance scores to ensure high-quality inputs, and experiment with chunk sizes/overlaps during indexing to optimize context granularity.

Ollama Snowflake-Arctic-Embed optimization tips

To optimize Ollama Snowflake-Arctic-Embed in a RAG setup, ensure input text is cleanly chunked (e.g., 256-512 tokens) to align with its context window. Use batch processing for embeddings to reduce latency, and leverage hardware acceleration (e.g., CUDA for GPUs). Fine-tune with domain-specific data to improve retrieval relevance. Quantize the model for faster inference with minimal accuracy loss. Cache frequently accessed embeddings, and experiment with dimensionality reduction techniques like PCA if storage or speed constraints exist. Regularly validate embedding quality using similarity benchmarks.

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 power of building a RAG (Retrieval-Augmented Generation) system from the ground up, stitching together cutting-edge tools into a seamless pipeline. You learned how Haystack acts as the backbone, orchestrating every step of the process—from ingesting data to querying results—while OpenSearch steps in as your scalable vector database, storing embeddings and enabling lightning-fast semantic searches. The magic truly comes alive with Mistral Large, the LLM that transforms retrieved information into coherent, context-rich answers, and Ollama’s snowflake-arctic-embed model, which converts text into high-dimensional vectors, ensuring your system understands nuances in your data. Together, these components form a dynamic loop: retrieve relevant context, generate insightful responses, and refine your system’s accuracy over time. You also picked up pro tips like optimizing chunk sizes for embeddings, balancing speed with precision, and even using the free RAG cost calculator to estimate expenses and scale smarter—because great innovation doesn’t have to break the bank!

Now that you’ve seen how these pieces fit together—like a well-oiled machine delivering intelligent, context-aware answers—it’s your turn to take the reins. Whether you’re building a chatbot, a research assistant, or a knowledge hub, you’ve got the tools to experiment, tweak, and push boundaries. Remember, every iteration brings you closer to a system that feels almost alive with understanding. So fire up your IDE, play with those parameters, and let your creativity run wild. The world of RAG is vast, and you’re now equipped to explore it with confidence. Go build something amazing, share your wins, and keep iterating—because the future of intelligent applications is yours to shape, one query at a time! 🚀

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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