Context windows are now absurdly long, but retrieval still matters.

Long contexts are impressive, but retrieval isn't obsolete yet.

What changed
• Context windows expanded to 200k-2M tokens across major providers
• Performance degrades in middle regions of very long contexts
• Cost and latency scale roughly linearly with context size
Who it affects
• Developers building RAG systems
• Teams analyzing large documents
• Anyone considering ditching retrieval for huge contexts
What to do now
• Test needle-in-haystack performance with your actual content
• Calculate cost at scale before committing to large contexts
• Keep using retrieval for knowledge bases unless testing proves otherwise
• Organize long contexts with clear structure and navigation aids