Build RAG Chatbot with Haystack, Zilliz Cloud, OpenAI GPT-o3-mini, and Ollama mxbai-embed-large

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.
Zilliz Cloud: a fully managed vector database-as-a-service platform built on top of the open-source Milvus, designed to handle high-performance vector data processing at scale. It enables organizations to efficiently store, search, and analyze large volumes of unstructured data, such as text, images, or audio, by leveraging advanced vector search technology. It offers a free tier supporting up to 1 million vectors.
OpenAI GPT-o3-mini: A lightweight, efficient language model optimized for rapid text generation and comprehension. Designed to balance performance with resource efficiency, it excels in applications requiring quick responses and lower computational costs, such as mobile apps, customer service chatbots, and real-time content moderation. Ideal for developers seeking scalable AI solutions with minimal infrastructure demands.
Ollama mxbai-embed-large: A high-performance embedding model optimized for converting text into dense vector representations, excelling in semantic similarity tasks. It features multilingual support, efficient processing of long documents, and low-latency inference, making it ideal for semantic search, document clustering, content recommendation, and retrieval-augmented generation (RAG) pipelines.

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 OpenAI GPT-o3-mini

To use OpenAI models, you need to get an OpenAI API key. The Haystack integration with OpenAI models uses an OPENAI_API_KEY environment variable by default. Otherwise, you can pass an API key at initialization with api_key:

generator = OpenAIGenerator(api_key=Secret.from_token("<your-api-key>"), model="gpt-4o-mini")

Then, the generator component needs a prompt to operate, but you can pass any text generation parameters valid for the openai.ChatCompletion.create method directly to this component using the generation_kwargs parameter, both at initialization and to run() method. For more details on the parameters supported by the OpenAI API, refer to the OpenAI documentation.

Now let's install and set up OpenAI models.

from haystack.components.generators import OpenAIGenerator

generator = OpenAIGenerator(model="o3-mini", api_key=Secret.from_token("<your-api-key>"))

Step 3: Install and Set Up Ollama mxbai-embed-large

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="mxbai-embed-large")
document_embedder = OllamaDocumentEmbedder(model="mxbai-embed-large")

Step 4: Install and Set Up Zilliz Cloud

pip install --upgrade pymilvus milvus-haystack

from milvus_haystack import MilvusDocumentStore
from milvus_haystack.milvus_embedding_retriever import MilvusEmbeddingRetriever

document_store = MilvusDocumentStore(connection_args={"uri": ZILLIZ_CLOUD_URI, "token": ZILLIZ_CLOUD_TOKEN}, drop_old=True,)
retriever = MilvusEmbeddingRetriever(document_store=document_store, top_k=3)

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 = MilvusEmbeddingRetriever(document_store=document_store, top_k=3) 
 text_embedder = OllamaTextEmbedder(model="mxbai-embed-large")

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.

Zilliz Cloud optimization tips

Optimizing Zilliz Cloud for a RAG system involves efficient index selection, query tuning, and resource management. Use Hierarchical Navigable Small World (HNSW) indexing for high-speed, approximate nearest neighbor search while balancing recall and efficiency. Fine-tune ef_construction and M parameters based on your dataset size and query workload to optimize search accuracy and latency. Enable dynamic scaling to handle fluctuating workloads efficiently, ensuring smooth performance under varying query loads. Implement data partitioning to improve retrieval speed by grouping related data, reducing unnecessary comparisons. Regularly update and optimize embeddings to keep results relevant, particularly when dealing with evolving datasets. Use hybrid search techniques, such as combining vector and keyword search, to improve response quality. Monitor system metrics in Zilliz Cloud’s dashboard and adjust configurations accordingly to maintain low-latency, high-throughput performance.

OpenAI GPT-3-mini optimization tips

Optimize OpenAI GPT-3-mini in RAG by chunking input data into smaller, semantically coherent segments to reduce token waste and improve retrieval relevance. Use structured prompts with explicit instructions (e.g., "Answer based on: [context]") to guide outputs. Fine-tune temperature (0.2-0.5 for precision) and max tokens to balance brevity and completeness. Cache frequent queries to reduce latency and costs. Preprocess retrieved documents to remove redundancy and align with query intent. Monitor outputs via metrics like BLEU or ROUGE and iterate based on user feedback.

Ollama mxbai-embed-large optimization tips

Optimize Ollama mxbai-embed-large in RAG by preprocessing input text: clean, normalize, and chunk documents into 256-512 token segments for balanced context. Use batch inference to parallelize embedding generation, reducing latency. Fine-tune the model on domain-specific data if labeled pairs are available. Cache frequent or static embeddings to avoid recomputation. Ensure hardware acceleration (e.g., CUDA) is enabled. Test cosine similarity thresholds for retrieval accuracy and adjust based on downstream tasks. Regularly update the vector database with fresh data to maintain relevance.

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 learned how to stitch together cutting-edge tools to create a powerful RAG system from the ground up! You discovered how Haystack acts as the glue, simplifying the orchestration of your pipeline by connecting the dots between components. Zilliz Cloud stepped in as your high-performance vector database, handling lightning-fast similarity searches across dense embeddings generated by Ollama’s mxbai-embed-large model, which transformed raw text into rich numerical representations. Then, OpenAI’s GPT-o3-mini took center stage, synthesizing context from retrieved data into coherent, human-like responses—proving that even smaller LLMs can pack a punch when paired with the right data. Along the way, you saw how these pieces harmonize: embeddings make data searchable, Zilliz stores and retrieves it efficiently, and the LLM generates answers that feel almost magical. Plus, you picked up pro tips for optimizing costs and latency, like tweaking chunk sizes and leveraging Zilliz’s built-in compression, and even got a sneak peek at that free RAG cost calculator to keep your projects budget-friendly.

Now, you’re equipped to build smarter, faster, and more efficient AI applications! Whether you’re crafting chatbots, research assistants, or custom knowledge bases, you’ve got the blueprint to innovate. Experiment with different models, fine-tune retrieval strategies, and let your creativity run wild—every tweak brings you closer to a solution that feels uniquely yours. The future of AI is all about combining tools in clever ways, and you’re already ahead of the curve. So fire up your IDE, spin up a Zilliz cluster, and start building. The possibilities are endless, and your next breakthrough is just a few lines of code away. Let’s go make something amazing! 🚀

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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