To reduce API costs and improve data processing efficiency, a new open-source CLI tool called EntropyGuard was developed for local data cleaning and deduplication. It addresses the issue of duplicate content in document chunks, which can inflate token usage and costs when using services like OpenAI. The tool employs two stages of deduplication: exact deduplication using xxHash and semantic deduplication with local embeddings and FAISS. This approach has demonstrated significant cost savings, reducing dataset sizes by approximately 40% and enhancing retrieval quality by eliminating redundant information. This matters because it offers a cost-effective solution for optimizing data handling without relying on expensive enterprise platforms or cloud services.
