TurboVec: A Case Study in Cost-Efficient Private Retrieval for Enterprise RAG via Codebook-Oblivious Quantization

Enterprise Retrieval-Augmented Generation (RAG) deployments face a critical governance gap: while LLM generation cost is metered per token, the retrieval layer - vector memory, similarity compute, and embedding API calls - remains an unattributed shared cost, enabling invisible cross-subsidization among tenants. We present Cost-Governed RAG, an architecture that integrates a codebook-oblivious vector index (TurboVec) with a multi-tenant LLM governance gateway, creating a unified observability stack where embedding, retrieval, and generation costs are jointly attributable per tenant. The architecture exploits TurboVec's deterministic, closed-form memory formula to enable near-exact per-tenant retrieval cost calculation - a property unavailable in graph-based indexes with non-linear memory overhead. Deployed on Snowpark Container Services within a cloud data platform's governance boundary, the system achieves 99.96% end-to-end cost attribution accuracy across 100 simulated tenants (10M vectors, log-normal size distribution) with telemetry overhead below 0.04% of query latency. The architecture reduces retrieval infrastructure cost by 3.1-9.0x compared to managed vector database services under the pricing assumptions detailed in Section IV. We formalize a three-layer cost model and demonstrate that codebook-oblivious quantization enables deterministic per-tenant cost attribution while also removing the shared-codebook leakage surface present in trained quantizers - the latter observation being exploratory and subject to the limitations described in Section VII.

Retrieval-Augmented Generation (RAG) has made dense retrieval over large document collections a standard building block. Organizations increasingly outsource vector indexes to untrusted clouds, exposing proprietary corpora and user queries. Cryptographic protection is challenging because each query searches corpus-scale state, causing computation, correlated randomness, and communication to grow with the corpus. At million-document scale, a naive secure implementation takes minutes and about 90 GB of communication per query. Even recent optimized systems require 10--22 seconds. We propose Spruce (Scalable Private Outsourced Retrieval Using Compact Embeddings), which co-designs representations with the cryptographic protocol. Spruce learns compact binary codes that preserve candidates for full-precision reranking, replacing corpus-wide embedding scoring with efficient Hamming-distance computation under two-server multi-party computation (MPC). A corpus-calibrated fixed-radius protocol avoids multi-round candidate selection while preserving retrieval quality. Spruce also provides private cluster pruning, which trades minor quality loss for substantially less computation, and a one-core owner-operated dealer that removes cloud OT preprocessing bottlenecks. Across four corpora containing 383K--5.42M documents, Spruce preserves the original search quality with median candidate sets of only 382--1,952. At 10 Gbps inter-server bandwidth, full scans take 0.21--2.97 seconds, $4.8$--$6.7\times$ faster than the closest measured prior work. Private pruning takes 0.06--1.09 seconds, achieves $13.1$--$22.9\times$ speedups, and retains $93.9\%$--$97.3\%$ of full-float NDCG. On the largest corpus, pruning and the dealer jointly improve sustained throughput by $31.5\times$ at 1 Gbps per link.

Retrieval-augmented generation (RAG) depends on dense retrieval: each document is stored as a learned vector, and a query is answered by finding its nearest neighbors in that vector space. Keeping one full-precision vector per document is the dominant index cost at corpus scale, so retrieval systems replace each vector with a short code of a few bytes---a step called quantization. Standard quantizers such as product quantization (PQ) pick the code that reconstructs the original vector most closely. A single code is even more useful if it serves several byte budgets at once: when its short prefixes are each directly searchable, a deployment can set its efficiency--quality operating point without re-encoding the corpus. But training all prefixes under one objective makes the early bits a compromise across budgets---short codes improve while the full-width code degrades. Quantization to low-bit representation, such as binary codes, further sharpens the conflict. We introduce Matryoshka Hash Representations (MHR), a two-stage procedure that separates full-width training from prefix organization. MHR first learns a longer binary code, then freezes the model and trains additional zero-initialized residual code adaptors for directly searchable prefixes. Documents are stored at one bit per coordinate, while queries keep continuous logits like PQ to attain sufficient expressivity. We implement the search process with FAISS FastScan. Trained on MS MARCO and zero-shot transferred to seven BEIR datasets, MHR reaches .5561 NDCG@10 and .6535 Recall@100 at 32 bytes, surpassing the best baseline of the same budget. The advantage is more pronounced in lower budgets. The same code also strengthens two common pipelines: shortlisting candidates for full-precision reranking, and pruning a low-storage graph index such as LEANN.