Comment by kgeist

I did something similar: made an LLM generate a list of "blockers" per transcribed customer call, calculated the blockers' embeddings, and clustered them.

The OP has 6k labels and discusses time + cost, but what I found is:

- a small, good enough locally hosted embedding model can be faster than OpenAI's embedding models (provided you have a fast GPU available), and it doesn't cost anything

- for just 6k labels you don't need Pinecone at all, with Python it took me like a couple of seconds to do all calculations in memory

For classification + embedding you can use locally hosted models, it's not a particularly complex task that requires huge models or huge GPUs. If you plan to do such classification tasks regularly, you can make a one-time investment (buy a GPU) and then you'll be able to run many experiments with your data without having to think about costs anymore.