Build RAG Chatbot with Llamaindex, Milvus, OpenAI GPT-o1, and Ollama granite-embedding

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:

Llamaindex: a data framework that connects large language models (LLMs) with various data sources, enabling efficient retrieval-augmented generation (RAG). It helps structure, index, and query private or external data, optimizing LLM applications for search, chatbots, and analytics.
Milvus: An open-source vector database optimized to store, index, and search large-scale vector embeddings efficiently, perfect for use cases like RAG, semantic search, and recommender systems. If you hate to manage your own infrastructure, we recommend using Zilliz Cloud, which is a fully managed vector database service built on Milvus and offers a free tier supporting up to 1 million vectors.
OpenAI GPT-1: A foundational transformer-based language model designed for natural language understanding and generation. Strengths include coherent text generation, contextual comprehension, and adaptability to diverse NLP tasks. Ideal for text completion, basic conversational agents, and early-stage language research, serving as a precursor to more advanced models like GPT-3 and GPT-4.
Ollama Granite-Embedding: A high-performance embedding model designed for semantic understanding and retrieval tasks. It excels at generating dense vector representations for text, enabling robust similarity search, clustering, and retrieval-augmented generation (RAG). Ideal for enterprise applications requiring scalable, privacy-preserving semantic analysis in on-premises or edge environments.

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 Llamaindex

pip install llama-index

Step 2: Install and Set Up OpenAI GPT-o1

%pip install llama-index llama-index-llms-openai

from llama_index.llms.openai import OpenAI

llm = OpenAI(
    model="o1",
    # api_key="some key",  # uses OPENAI_API_KEY env var by default
)

Step 3: Install and Set Up Ollama granite-embedding

%pip install llama-index-embeddings-ollama

from llama_index.embeddings.ollama import OllamaEmbedding

embed_model = OllamaEmbedding(
    model_name="granite-embedding",
)

Step 4: Install and Set Up Milvus

pip install llama-index-vector-stores-milvus

from llama_index.core import VectorStoreIndex, StorageContext
from llama_index.vector_stores.milvus import MilvusVectorStore

vector_store = MilvusVectorStore(
    uri="./milvus_demo.db",
    dim=1536,  # You can replace it with your embedding model's dimension.
    overwrite=True,
)

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 with your own dataset to customize your RAG chatbot.

import requests

from llama_index.core import SimpleDirectoryReader

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

print("Document ID:", documents[0].doc_id)

storage_context = StorageContext.from_defaults(vector_store=vector_store)
index = VectorStoreIndex.from_documents(
    documents, storage_context=storage_context, embed_model=embed_model
)

query_engine = index.as_query_engine(llm=llm)
res = query_engine.query("What is Milvus?")  # You can replace it with your own question.
print(res)

Example output

Milvus is a high-performance, highly scalable vector database designed to operate efficiently across various environments, from personal laptops to large-scale distributed systems. It is available as both open-source software and a cloud service. Milvus excels in managing unstructured data by converting it into numerical vectors through embeddings, which facilitates fast and scalable searches and analytics. The database supports a wide range of data types and offers robust data modeling capabilities, allowing users to organize their data effectively. Additionally, Milvus provides multiple deployment options, including a lightweight version for quick prototyping and a distributed version for handling massive data scales.

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.

LlamaIndex optimization tips

To optimize LlamaIndex for a Retrieval-Augmented Generation (RAG) setup, structure your data efficiently using hierarchical indices like tree-based or keyword-table indices for faster retrieval. Use embeddings that align with your use case to improve search relevance. Fine-tune chunk sizes to balance context length and retrieval precision. Enable caching for frequently accessed queries to enhance performance. Optimize metadata filtering to reduce unnecessary search space and improve speed. If using vector databases, ensure indexing strategies align with your query patterns. Implement async processing to handle large-scale document ingestion efficiently. Regularly monitor query performance and adjust indexing parameters as needed for optimal results.

Milvus optimization tips

Milvus serves as a highly efficient vector database, critical for retrieval tasks in a RAG system. To optimize its performance, ensure that indexes are properly built to balance speed and accuracy; consider utilizing HNSW (Hierarchical Navigable Small World) for efficient nearest neighbor search where response time is crucial. Partitioning data based on usage patterns can enhance query performance and reduce load times, enabling better scalability. Regularly monitor and adjust cache settings based on query frequency to avoid latency during data retrieval. Employ batch processing for vector insertions, which can minimize database lock contention and enhance overall throughput. Additionally, fine-tune the model parameters by experimenting with the dimensionality of the vectors; higher dimensions can improve retrieval accuracy but may increase search time, necessitating a balance tailored to your specific use case and hardware infrastructure.

OpenAI GPT-01 optimization tips

To optimize OpenAI GPT-01 in a RAG setup, fine-tune prompts to include explicit instructions and structured context (e.g., “Answer using: [retrieved text]”). Limit response length with max_tokens to reduce verbosity and cost. Use a lower temperature (0.2–0.5) for factual accuracy. Preprocess retrieved documents to remove irrelevant content, ensuring inputs fit token limits. Cache frequent queries to minimize API calls. Experiment with chunking strategies for context injection and prioritize critical information at the prompt’s start or end. Monitor latency and adjust batch sizes for throughput efficiency.

Ollama Granite-Embedding optimization tips

To optimize Ollama Granite-Embedding in RAG, ensure input text is cleanly chunked (avoid truncation by splitting documents into 512-token segments). Fine-tune embedding parameters like temperature and batch size for speed-quality balance. Use hardware acceleration (e.g., CUDA) and quantize the model for faster inference. Normalize embeddings to improve similarity calculations. Regularly evaluate retrieval accuracy with benchmarks like NDCG or recall@k. Cache frequent queries to reduce redundant computations, and pre-filter low-relevance documents using metadata to lighten embedding workloads.

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?

Wow! What a journey it has been! After diving into this tutorial, you’ve taken a significant step toward understanding and implementing a powerful Retrieval-Augmented Generation (RAG) system. You've learned how to integrate key components, including LlamaIndex for your framework, Milvus as your vector database, OpenAI's GPT-01 as your language model, and Ollama’s granite-embedding model for generating those valuable embeddings. By combining these tools, you've unlocked the secrets to building a system that not only retrieves relevant information but also generates insightful, human-like text based on that information. Doesn’t that sound incredible?

You’ve also explored some optimization tips that ensure your RAG pipeline runs smoothly and efficiently. Plus, with our interactive free RAG cost calculator, you can easily assess the cost implications of your RAG system, helping you make informed decisions as you innovate. It's time to harness what you’ve learned and embark on creating, optimizing, and pushing the boundaries of your own RAG applications. Remember, every great project begins with that first step, so go ahead—dive into the excitement of building something unique and impactful! Your creativity is your limit, and I can’t wait to see what incredible solutions you come up with!

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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