Cost-Governed RAG: Unified Per-Tenant Cost Attribution Across Retrieval and Generation in Multi-Tenant LLM Systems
Multi-tenant Retrieval-Augmented Generation (RAG) systems suffer from a significant governance gap: while large language model (LLM) generation costs are metered precisely per token, the associated retrieval infrastructure—including vector memory, similarity computation, and embedding API calls—remains an unattributed, shared cost. This limitation leads to invisible cross-subsidization among tenants, complicating enterprise billing and resource allocation. To address this, researcher Navnit Shukla introduced "Cost-Governed RAG" in a paper published on arXiv (cs.AI). Designed for database engineers, infrastructure architects, and systems researchers, this architecture provides a unified observability stack that enables joint, per-tenant cost attribution across the entire embedding, retrieval, and generation pipeline.
The core technical mechanism driving this architecture is the integration of a multi-tenant LLM governance gateway with "TurboVec," a codebook-oblivious vector index. Unlike traditional graph-based vector indexes that suffer from non-linear memory overhead, TurboVec utilizes a deterministic, closed-form memory formula. This mathematical determinism allows the system to calculate near-exact retrieval costs for each tenant. By leveraging a formalized three-layer cost model and codebook-oblivious quantization, the architecture also mitigates the security risk of shared-codebook data leakage inherent in trained quantizers. When evaluated on Snowpark Container Services with a simulated workload of 10 million vectors across 100 tenants under a log-normal size distribution, the system achieved a remarkable 99.96% end-to-end cost attribution accuracy. Crucially, this level of precision introduces minimal performance impact, keeping telemetry overhead below 0.04% of query latency while reducing retrieval infrastructure costs by 3.1 to 9.0 times compared to managed vector database services.
This work shifts the paradigm of enterprise RAG deployment from coarse-grained approximation to precise, deterministic cloud financial operations (FinOps). By proving that retrieval-layer costs can be audited and attributed with negligible performance penalties, it paves the way for fairer multi-tenant commercial models and more robust data isolation boundaries. Future enterprise systems may build upon these codebook-oblivious indexing methods to enforce strict compliance and budget policies dynamically at the query-routing level. This analysis is based on the published abstract of the research paper.