# What is a vector database?

A vector database stores embeddings and answers nearest-neighbor queries: given a query vector, return the most similar stored vectors in milliseconds, even across millions of items. It is the retrieval layer under semantic search and RAG, built around indexes that trade a little recall for large speed gains.

The workflow is embed once, query forever: each document becomes a vector on intake, and every search is a vector comparison rather than a keyword match. Embedding is cheap at catalog prices ($0.008 per million tokens for the entry embedding model), so indexing a large archive costs single-digit dollars.

Approximate-nearest-neighbor indexes (HNSW and relatives) are what make scale work; exact search over millions of vectors would be too slow. For most product features, a vector index inside your existing database is enough before a dedicated system is justified.

## Related terms

- [Retrieval-augmented generation](https://allocate.network/glossary/rag.md)
- [Embeddings](https://allocate.network/glossary/embeddings.md)
- [Reranking](https://allocate.network/glossary/reranking.md)

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