RAG System (Production Architecture)

Business Problem

Organizations need real-time answers from massive document stores while ensuring safety, accuracy, and scalability.

System Design

API Layer
WHY: Entry point for all requests

HOW: FastAPI async endpoints handle validation, auth, and routing

SCALE: Horizontal scaling behind load balancer
Handles JWT auth, rate limiting, logging, and request normalization. Integrated with API Gateway for throttling.
Embedding Service
WHY: Convert text → vector space

HOW: Azure OpenAI embedding model

SCALE: Batch async processing to reduce cost
Chunking strategy (recursive splitting), batch embedding, and caching frequently used embeddings in Redis.
Vector DB (FAISS)
WHY: Fast similarity search

HOW: IndexFlatIP + cosine similarity

SCALE: Sharding + memory optimization
Top-K retrieval with approximate nearest neighbor optimization. Index stored in memory for ultra-low latency.
Reranker
WHY: Improve relevance

HOW: Cross-encoder model ranks retrieved docs

SCALE: GPU inference
Uses transformer-based reranker to filter noisy FAISS results before passing to LLM.
LLM Layer
WHY: Generate final answer

HOW: Azure OpenAI GPT

SCALE: Token optimization + caching
Prompt engineering, context injection, and token limit optimization to reduce cost.
Guardrails
WHY: Prevent hallucination

HOW: NVIDIA NeMo policies

SCALE: Rule-based + LLM hybrid
Validates output, enforces policies, blocks unsafe responses, and ensures compliance.

Deployment & Scaling

Metrics