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Chunking

Chunking is the process of splitting source documents into smaller passages for embedding and retrieval, and the chunk size and boundary strategy largely determine how well a RAG system can find relevant information.

Chunks that are too small lose the context needed to answer; chunks that are too large dilute the embedding and retrieve imprecisely. Splitting on semantic boundaries — sections, headings, paragraphs — generally beats fixed character counts. It is the single most common root cause of disappointing RAG performance.

Related terms

  • RAG (retrieval-augmented generation)

    Retrieval-augmented generation is a technique where relevant documents are fetched from an external store and inserted into a language model’s prompt, so the model answers from that specific source material rather than from its training data alone.

  • Vector database

    A vector database stores text as numerical embeddings and retrieves entries by semantic similarity rather than keyword match, forming the retrieval layer of most RAG systems.

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