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1Z0-1127-25 Fundamentals of Large Language Models Practice Question

An architect is designing a multi-tenant application using OCI Generative AI. Each tenant has custom instructions and data. To minimize cost while maintaining isolation, which deployment approach is recommended?

⚠ Common exam trap

Many exam-takers assume fine-tuning is necessary for customization, overlooking that system prompts and retrieval can achieve equivalent isolation at a fraction of the cost, which the Oracle OCI GenAI exam tests by contrasting dedicated endpoints against shared-model strategies.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Shared base model with per-tenant system prompts and retrieval.

It leverages a shared base model with per-tenant system prompts and retrieval-augmented generation (RAG) to isolate custom instructions and data without the cost of dedicated endpoints. This approach minimizes compute overhead by reusing a single model instance while maintaining logical isolation through prompt engineering and vector-based retrieval, aligning with OCI's pay-as-you-go pricing model.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Dedicated fine-tuned endpoint per tenant.

    Why it's wrong here

    Dedicated endpoints are costly and do not leverage shared infrastructure.

  • Shared base model with per-tenant system prompts and retrieval.

    Why this is correct

    This approach uses a shared model with tenant-specific prompts and RAG, balancing cost and isolation.

  • On-premises deployment of open-source models.

    Why it's wrong here

    On-premises deployment shifts operational burden and may not provide the same scalability or integration with OCI.

  • Single large fine-tuned model with conditional logic.

    Why it's wrong here

    A single model with conditional logic is prone to prompt injection and lacks proper data isolation.

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