Agentic AI Reference Architecture

Knowledge & Data · Model asset

Cost-Optimized Embedding Model

Model assetKnowledge & DataKnowledge & Dataarc:CostOptimizedEmbeddingModel

A smaller, lower-dimensional dense embedding model offering solid general retrieval quality at substantially lower cost.

Responsibility. Encodes text into moderate-dimension vectors at low cost.

Variant of Text Embedding Model abstract

When to choose. Choose for cost-sensitive applications with moderate accuracy needs and as the default starting point to establish baseline retrieval performance; open-source variants when self-hosting without API dependencies is required.

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Direct neighbourhood (hover for relationship types)

Relationships

alternative to variability

Quantitative guidance

As stated by the sources; verify before use.

Classification

Technologies
text-embedding-3-smallE5-Large-V2MiniLM

Sources

  1. Ch6.1: T. Nguyen, "Embeddings and RAG Fundamentals," in Mastering Agentic AI Systems: Guide for the NVIDIA NCP-AAI Exam, 1st ed. 2026, ch. 6.1. ISBN: 9798244538229.