
Well before OpenAI upended the technology industry with its release of ChatGPT in the fall of 2022, Douwe Kiela already understood why large language models, on their own, could only offer partial solutions for key enterprise use cases.
The young Dutch CEO of Contextual AI had been deeply influenced by two seminal papers from Google and OpenAI, which together outlined the recipe for creating fast, efficient transformer-based generative AI models and LLMs.
Soon after those papers were published in 2017 and 2018, Kiela and his team of AI researchers at Facebook, where he worked at that time, realized LLMs would face profound data freshness issues.
They knew that when foundation models like LLMs were trained on massive datasets, the training not only imbued the model with a metaphorical brain for reasoning across data. The training data also represented the entirety of a model's knowledge that it could draw on to generate answers to users' questions.
Kiela's team realized that, unless an LLM could access relevant real-time data in an efficient, cost-effective way, even the smartest LLM wouldn't be very useful for many enterprises' needs.
So, in the spring of 2020, Kiela and his team published a seminal paper of their own, which introduced the world to retrieval-augmented generation. RAG, as it's commonly called, is a method for continuously and cost-effectively updating foundation models with new, relevant information, including from a user's own files and from the internet. With RAG, an LLM's knowledge is no longer confined to its training data, which makes models far more accurate, impactful and relevant to enterprise users.
Today, Kiela and Amanpreet Singh, a former colleague at Facebook, are the CEO and CTO of Contextual AI, a Silicon Valley-based startup, which recently closed an $80 million Series A round, which included NVIDIA's investment arm, NVentures. Contextual AI is also a member of NVIDIA Inception, a program designed to nurture startups. With roughly 50 employees, the company says it plans to double in size by the end of the year.
The platform Contextual AI offers is called RAG 2.0. In many ways, it's an advanced, productized version of the RAG architecture Kiela and Singh first described in their 2020 paper.
RAG 2.0 can achieve roughly 10x better parameter accuracy and performance over competing offerings, Kiela says.
That means, for example, that a 70-billion-parameter model that would typically require significant compute resources could instead run on far smaller infrastructure, one built to handle only 7 billion parameters without sacrificing accuracy. This type of optimization opens up edge use cases with smaller computers that can perform at significantly higher-than-expected levels.
When ChatGPT happened, we saw this enormous frustration where everybody recognized the potential of LLMs, but also realized the technology wasn't quite there yet, explained Kiela. We knew that RAG was the solution to many of the problems. And we also knew that we could do much better than what we outlined in the original RAG paper in 2020.
Integrated Retrievers and Language Models Offer Big Performance Gains The key to Contextual AI's solutions is its close integration of its retriever architecture, the R in RAG, with an LLM's architecture, which is the generator, or G, in the term. The way RAG works is that a retriever interprets a user's query, checks various sources to identify relevant documents or data and then brings that information back to an LLM, which reasons across this new information to generate a response.
Since around 2020, RAG has become the dominant approach for enterprises that deploy LLM-powered chatbots. As a result, a vibrant ecosystem of RAG-focused startups has formed.
One of the ways Contextual AI differentiates itself from competitors is by how it refines and improves its retrievers through back propagation, a process of adjusting algorithms - the weights and biases - underlying its neural network architecture.
And, instead of training and adjusting two distinct neural networks, that is, the retriever and the LLM, Contextual AI offers a unified state-of-the-art platform, which aligns the retriever and language model, and then tunes them both through back propagation.
Synchronizing and adjusting weights and biases across distinct neural networks is difficult, but the result, Kiela says, leads to tremendous gains in precision, response quality and optimization. And because the retriever and generator are so closely aligned, the responses they create are grounded in common data, which means their answers are far less likely than other RAG architectures to include made up or hallucinated data, which a model might offer when it doesn't know an answer.
Our approach is technically very challenging, but it leads to much stronger coupling between the retriever and the generator, which makes our system far more accurate and much more efficient, said Kiela.
Tackling Difficult Use Cases With State-of-the-Art Innovations RAG 2.0 is essentially LLM-agnostic, which means it works across different open-source language models, like Mistral or Llama, and can accommodate customers' model preferences. The startup's retrievers were developed using NVIDIA's Megatron LM on a mix of NVIDIA H100 and A100 Tensor Core GPUs hosted in Google Cloud.
One of the significant challenges every RAG solution faces is how to identify the most relevant information to answer a user's query when that information may be stored in a variety of formats, such as text, video or PDF.
Contextual AI overcomes this challenge through a mixture of retrievers approach, which aligns different retrievers' sub-specialties with the different formats data is stored in.
Contextual AI deploys a combination
More from Nvidia
13/09/2025
Celtic languages - including Cornish, Irish, Scottish Gaelic and Welsh - are the U.K.'s oldest living languages. To empower their speakers, the UK-LLM sover...
10/09/2025
GeForce NOW Blackwell RTX 5080-class SuperPODs are now rolling out, unlocking a new level of ultra high-performance, cinematic cloud gaming.
GeForce NOW Ultima...
09/09/2025
Inference has emerged as the new frontier of complexity in AI. Modern models are...
09/09/2025
As large language models (LLMs) grow larger, they get smarter, with open models from leading developers now featuring hundreds of billions of parameters. At the...
09/09/2025
At this week's AI Infrastructure Summit in Silicon Valley, NVIDIA's VP o...
09/09/2025
Inference performance is critical, as it directly influences the economics of an AI factory. The higher the throughput of AI factory infrastructure, the more to...
09/09/2025
At this week's IAA Mobility conference in Munich, NVIDIA Vice President of A...
09/09/2025
ComfyUI - an open-source, node-based graphical interface for running and buildin...
04/09/2025
NVIDIA today announced new AI education support for K-12 programs at a White House event to celebrate public-private partnerships that advance artificial intell...
04/09/2025
Editor's note: This post is part of the AI On blog series, which explores the latest techniques and real-world applications of agentic AI, chatbots and copi...
04/09/2025
NVIDIA Blackwell RTX is coming to the cloud on Wednesday, Sept. 10 - an upgrade ...
03/09/2025
3D artists are constantly prototyping.
In traditional workflows, modelers must build placeholder, low-fidelity assets to populate 3D scenes, tinkering and adju...
02/09/2025
For more than a century, meteorologists have chased storms with chalkboards, equ...
28/08/2025
Brace yourself, COGs - the Locusts aren't the only thing rising up. The Coal...
28/08/2025
Last week at Gamescom, NVIDIA announced the winners of the NVIDIA and ModDB RTX ...
27/08/2025
AI models are advancing at a rapid rate and scale.
But what might they lack that (most) humans don't? Common sense: an understanding, developed through rea...
25/08/2025
Robots around the world are about to get a lot smarter as physical AI developers...
25/08/2025
As autonomous vehicle systems rapidly grow in complexity, equipped with reasonin...
22/08/2025
As the latest member of the NVIDIA Blackwell architecture family, the NVIDIA Blackwell Ultra GPU builds on core innovations to accelerate training and AI reason...
22/08/2025
AI reasoning, inference and networking will be top of mind for attendees of next...
21/08/2025
Japan is once again building a landmark high-performance computing system - not ...
21/08/2025
From AI assistants doing deep research to autonomous vehicles making split-second navigation decisions, AI adoption is exploding across industries.
Behind ever...
21/08/2025
Across the globe, AI factories are rising - massive new data centers built not to serve up web pages or email, but to train and deploy intelligence itself. Inte...
21/08/2025
Get a glimpse into the future of gaming.
The NVIDIA Blackwell RTX architecture is coming to GeForce NOW in September, marking the service's biggest upgrade...
20/08/2025
Editor's note: This blog is a part of Into the Omniverse, a series focused o...
18/08/2025
With over 175 games now supporting NVIDIA DLSS 4 - a suite of advanced, AI-power...
18/08/2025
At Gamescom, NVIDIA is releasing its first major update to Project G Assist - an...
15/08/2025
Of around 7,000 languages in the world, a tiny fraction are supported by AI lang...
14/08/2025
NVIDIA is partnering with the U.S. National Science Foundation (NSF) to create a...
14/08/2025
Warhammer 40,000: Dawn of War - Definitive Edition is marching onto GeForce NOW,...
13/08/2025
Black Forest Labs' FLUX.1 Kontext [dev] image editing model is now available as an NVIDIA NIM microservice.
FLUX.1 models allow users to edit existing imag...
11/08/2025
Using NVIDIA digital twin technologies, Amazon Devices & Services is powering bi...
11/08/2025
Packing the power of the NVIDIA Blackwell architecture in compact, energy-effici...
11/08/2025
Physical AI is becoming the foundation of smart cities, facilities and industria...
07/08/2025
This GFN Thursday brings an offer members can't refuse - 2K's highly ant...
05/08/2025
Two new open-weight AI reasoning models from OpenAI released today bring cutting...
05/08/2025
In collaboration with OpenAI, NVIDIA has optimized the company's new open-so...
05/08/2025
NVIDIA and OpenAI began pushing the boundaries of AI with the launch of NVIDIA D...
05/08/2025
NVIDIA GPUs are at the heart of modern computing. They're used across industries - from healthcare and finance to scientific research, autonomous systems an...
31/07/2025
August brings new levels of gaming excitement on GeForce NOW, with 2,300 titles now available to stream in the cloud.
Grab a controller and get ready for epic ...
31/07/2025
Interest in generative AI is continuing to grow, as new models include more capabilities. With the latest advancements, even enthusiasts without a developer bac...
29/07/2025
FourCastNet3 (FCN3) is the latest AI global weather forecasting system from NVID...
28/07/2025
The electrical grid is designed to support loads that are relatively steady, such as lighting, household appliances, and industrial machines that operate at con...
24/07/2025
For media company Black Mixture, AI isn't just a tool - it's an entire p...
24/07/2025
Sharpen the blade and brace for a journey steeped in myth and mystery. WUCHANG: Fallen Feathers has launched in the cloud.
Ride in style with skateboarding leg...
23/07/2025
In today's fast-evolving digital landscape, marketing teams face increasing ...
22/07/2025
Editor's note: This post is part of the AI On blog series, which explores th...
17/07/2025
Listen up citizens, the law is back and patrolling the cloud. Nacon's RoboCop Rogue City - Unfinished Business launches today in the cloud, bringing justice...
15/07/2025
Submissions for NVIDIA's Plug and Play: Project G-Assist Plug-In Hackathon a...