AIHacker Noonabout 4 hours ago
RAG Vector Search Costs Surge in Production
5 min read
A RAG demo for internal document search cost $340 monthly, but production scaling can balloon to $61,000. Vector databases consume 40-50% of total application cost, with memory representing 85-90% of that. Switching to a compressed index reduces memory costs by 70% with minimal accuracy loss.
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