book

Designing Large Language Model Applications

by Suhas Pai

March 2025

Intermediate to advanced

366 pages

9h 31m

English

O'Reilly Media, Inc.

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Who This Book Is ForHow This Book Is StructuredWhat This Book Is Not AboutHow to Read the BookConventions Used in This BookUsing Code ExamplesO’Reilly Online LearningHow to Contact UsAcknowledgments
Defining LLMsA Brief History of LLMsEarly YearsThe Modern LLM EraThe Impact of LLMsLLM Usage in the EnterprisePromptingZero-Shot PromptingFew-Shot PromptingChain-of-Thought PromptingPrompt ChainingAdversarial PromptingAccessing LLMs Through an APIStrengths and Limitations of LLMsBuilding Your First Chatbot PrototypeFrom Prototype to ProductionSummary
Ingredients of an LLMPre-Training Data RequirementsPopular Pre-Training DatasetsSynthetic Pre-Training DataTraining Data PreprocessingData Filtering and CleaningSelecting Quality DocumentsDeduplicationRemoving Personally Identifiable InformationTraining Set DecontaminationData MixturesEffect of Pre-Training Data on Downstream TasksBias and Fairness Issues in Pre-Training DatasetsSummary
VocabularyTokenizersTokenization PipelineNormalizationPre-TokenizationTokenizationByte Pair EncodingWordPieceSpecial TokensSummary
PreliminariesRepresenting MeaningThe Transformer ArchitectureSelf-AttentionPositional EncodingFeedforward NetworksLayer NormalizationLoss FunctionsIntrinsic Model EvaluationTransformer BackbonesEncoder-Only ArchitecturesEncoder-Decoder ArchitecturesDecoder-Only ArchitecturesMixture of ExpertsLearning ObjectivesFull Language ModelingPrefix Language ModelingMasked Language ModelingWhich Learning Objectives Are Better?Pre-Training ModelsSummary
Navigating the LLM LandscapeWho Are the LLM providers?Model FlavorsOpen Source LLMsHow to Choose an LLM for Your TaskOpen Source Versus Proprietary LLMsLLM EvaluationLoading LLMsHugging Face AccelerateOllamaLLM Inference APIsDecoding StrategiesGreedy DecodingBeam SearchTop-k SamplingTop-p SamplingRunning Inference on LLMsStructured OutputsModel Debugging and InterpretabilitySummary
The Need for Fine-TuningFine-Tuning: A Full ExampleLearning Algorithms ParametersMemory Optimization ParametersRegularization ParametersBatch SizeParameter-Efficient Fine-TuningWorking with Reduced PrecisionPutting It All TogetherFine-Tuning DatasetsUtilizing Publicly Available Instruction-Tuning DatasetsLLM-Generated Instruction-Tuning DatasetsSummary
Continual Pre-TrainingReplay (Memory)Parameter ExpansionParameter-Efficient Fine-TuningAdding New ParametersSubset MethodsCombining Multiple ModelsModel EnsemblingModel FusionAdapter MergingSummary

Defining Alignment TrainingReinforcement LearningTypes of Human FeedbackRLHF ExampleHallucinationsMitigating HallucinationsSelf-ConsistencyChain-of-ActionsRecitationSampling Methods for Addressing HallucinationDecoding by Contrasting LayersIn-Context HallucinationsHallucinations Due to Irrelevant InformationReasoningDeductive ReasoningInductive ReasoningAbductive ReasoningCommon Sense ReasoningInducing Reasoning in LLMsVerifiers for Improving ReasoningInference-Time ComputationFine-Tuning for ReasoningSummary
LLM Inference ChallengesInference Optimization TechniquesTechniques for Reducing ComputeK-V CachingEarly ExitKnowledge DistillationTechniques for Accelerating DecodingSpeculative DecodingParallel DecodingTechniques for Reducing Storage NeedsSymmetric QuantizationAsymmetric QuantizationSummary
LLM Interaction ParadigmsPassive ApproachThe Explicit ApproachThe Autonomous ApproachDefining AgentsAgentic WorkflowComponents of an Agentic SystemModelsToolsData StoresAgent Loop PromptGuardrails and VerifiersAgent Orchestration SoftwareSummary
Introduction to EmbeddingsSemantic SearchSimilarity MeasuresFine-Tuning Embedding ModelsBase ModelsTraining DatasetLoss FunctionsInstruction EmbeddingsOptimizing Embedding SizeMatryoshka EmbeddingsBinary and Integer EmbeddingsProduct QuantizationChunkingSliding Window ChunkingMetadata-Aware ChunkingLayout-Aware ChunkingSemantic ChunkingLate ChunkingVector DatabasesInterpreting EmbeddingsSummary
The Need for RAGTypical RAG ScenariosDeciding When to RetrieveThe RAG PipelineRewriteRetrieveRerankRefineInsertGenerateRAG for Memory ManagementRAG for Selecting In-Context Training ExamplesRAG for Model TrainingLimitations of RAGRAG Versus Long ContextRAG Versus Fine-TuningSummary
Multi-LLM ArchitecturesLLM CascadesRoutersTask-Specialized LLMsProgramming ParadigmsDSPyLMQLSummary

Content preview from Designing Large Language Model Applications

Preface

In the past few years, progress in the field of artificial intelligence has been occurring at breakneck speeds, spearheaded by advances in LLMs. It was not too long ago that LLMs were a nascent technology that struggled to generate a coherent paragraph; today they are able to solve complex mathematical problems, write convincing essays, and conduct long engaging conversations with humans.

As AI advances from strength to strength, it is rapidly being woven into the fabric of society, touching so many facets of our lives. Learning how to use AI models like LLMs effectively might be one of the most useful skills to learn this decade. LLMs are revolutionizing the world of software, and have made possible the development of applications previously considered impossible.

With all the promise that LLMs bring, the reality is that they are still not a mature technology and have many limitations like deficiencies in reasoning, lack of adherence to factuality, “hallucinations”, difficulties in steering them toward our goals, bias and fairness issues, and so on. Despite the existence of these limitations, we can still harness LLMs for good use and build a variety of helpful applications provided we effectively address their shortcomings.

Plenty of software frameworks have emerged that enable rapid prototype development of LLM applications. However, advancing from prototypes to production-grade applications is a road much less traveled, and is still a very challenging task. This is ...