diff --git a/backend/python/common-env/transformers/transformers.yml b/backend/python/common-env/transformers/transformers.yml
index c4635d81..4ffb13db 100644
--- a/backend/python/common-env/transformers/transformers.yml
+++ b/backend/python/common-env/transformers/transformers.yml
@@ -1,4 +1,4 @@
-name: bark
+name: transformers
 channels:
   - defaults
 dependencies:
@@ -34,10 +34,8 @@ dependencies:
       - botocore==1.31.61
       - certifi==2023.7.22
       - charset-normalizer==3.3.0
-      - compel==2.0.2
       - datasets==2.14.5
       - dill==0.3.7
-      - diffusers==0.24.0
       - einops==0.7.0
       - encodec==0.1.1
       - filelock==3.12.4
@@ -45,7 +43,7 @@ dependencies:
       - fsspec==2023.6.0
       - funcy==2.0
       - grpcio==1.59.0
-      - huggingface-hub>=0.19.4
+      - huggingface-hub==0.16.4
       - idna==3.4
       - jinja2==3.1.2
       - jmespath==1.0.1
@@ -70,6 +68,7 @@ dependencies:
       - packaging==23.2
       - pandas==2.1.1
       - peft==0.5.0
+      - git+https://github.com/bigscience-workshop/petals
       - protobuf==4.24.4
       - psutil==5.9.5
       - pyarrow==13.0.0
@@ -80,7 +79,7 @@ dependencies:
       - requests==2.31.0
       - rouge==1.0.1
       - s3transfer==0.7.0
-      - safetensors==0.4.0
+      - safetensors==0.3.3
       - scipy==1.11.3
       - six==1.16.0
       - sympy==1.12
@@ -95,4 +94,4 @@ dependencies:
       - urllib3==1.26.17
       - xxhash==3.4.1
       - yarl==1.9.2
-prefix: /opt/conda/envs/bark
+prefix: /opt/conda/envs/transformers
diff --git a/backend/python/diffusers/Makefile b/backend/python/diffusers/Makefile
index 8e7aabba..f3f9d4e2 100644
--- a/backend/python/diffusers/Makefile
+++ b/backend/python/diffusers/Makefile
@@ -1,6 +1,8 @@
 .PHONY: diffusers
 diffusers:
-	$(MAKE) -C ../common-env/transformers
+	@echo "Creating virtual environment..."
+	@conda env create --name diffusers --file diffusers.yml
+	@echo "Virtual environment created."
 
 .PHONY: run
 run:
diff --git a/backend/python/diffusers/diffusers.yml b/backend/python/diffusers/diffusers.yml
new file mode 100644
index 00000000..0708dbda
--- /dev/null
+++ b/backend/python/diffusers/diffusers.yml
@@ -0,0 +1,73 @@
+name: diffusers
+channels:
+  - defaults
+dependencies:
+  - _libgcc_mutex=0.1=main
+  - _openmp_mutex=5.1=1_gnu
+  - bzip2=1.0.8=h7b6447c_0
+  - ca-certificates=2023.08.22=h06a4308_0
+  - ld_impl_linux-64=2.38=h1181459_1
+  - libffi=3.4.4=h6a678d5_0
+  - libgcc-ng=11.2.0=h1234567_1
+  - libgomp=11.2.0=h1234567_1
+  - libstdcxx-ng=11.2.0=h1234567_1
+  - libuuid=1.41.5=h5eee18b_0
+  - ncurses=6.4=h6a678d5_0
+  - openssl=3.0.11=h7f8727e_2
+  - pip=23.2.1=py311h06a4308_0
+  - python=3.11.5=h955ad1f_0
+  - readline=8.2=h5eee18b_0
+  - setuptools=68.0.0=py311h06a4308_0
+  - sqlite=3.41.2=h5eee18b_0
+  - tk=8.6.12=h1ccaba5_0
+  - tzdata=2023c=h04d1e81_0
+  - wheel=0.41.2=py311h06a4308_0
+  - xz=5.4.2=h5eee18b_0
+  - zlib=1.2.13=h5eee18b_0
+  - pip:
+      - accelerate>=0.11.0
+      - certifi==2023.7.22
+      - charset-normalizer==3.3.0
+      - compel==2.0.2
+      - diffusers==0.24.0
+      - filelock==3.12.4
+      - fsspec==2023.9.2
+      - grpcio==1.59.0
+      - huggingface-hub>=0.19.4
+      - idna==3.4
+      - importlib-metadata==6.8.0
+      - jinja2==3.1.2
+      - markupsafe==2.1.3
+      - mpmath==1.3.0
+      - networkx==3.1
+      - numpy==1.26.0
+      - nvidia-cublas-cu12==12.1.3.1
+      - nvidia-cuda-cupti-cu12==12.1.105
+      - nvidia-cuda-nvrtc-cu12==12.1.105
+      - nvidia-cuda-runtime-cu12==12.1.105
+      - nvidia-cudnn-cu12==8.9.2.26
+      - nvidia-cufft-cu12==11.0.2.54
+      - nvidia-curand-cu12==10.3.2.106
+      - nvidia-cusolver-cu12==11.4.5.107
+      - nvidia-cusparse-cu12==12.1.0.106
+      - nvidia-nccl-cu12==2.18.1
+      - nvidia-nvjitlink-cu12==12.2.140
+      - nvidia-nvtx-cu12==12.1.105
+      - packaging==23.2
+      - pillow==10.0.1
+      - protobuf==4.24.4
+      - psutil==5.9.5
+      - pyparsing==3.1.1
+      - pyyaml==6.0.1
+      - regex==2023.10.3
+      - requests==2.31.0
+      - safetensors==0.4.0
+      - sympy==1.12
+      - torch==2.1.0
+      - tqdm==4.66.1
+      - transformers>=4.25.1
+      - triton==2.1.0
+      - typing-extensions==4.8.0
+      - urllib3==2.0.6
+      - zipp==3.17.0
+prefix: /opt/conda/envs/diffusers
\ No newline at end of file
diff --git a/backend/python/diffusers/run.sh b/backend/python/diffusers/run.sh
index 0ed1fb86..8e3e1bbf 100755
--- a/backend/python/diffusers/run.sh
+++ b/backend/python/diffusers/run.sh
@@ -6,7 +6,7 @@
 export PATH=$PATH:/opt/conda/bin
 
 # Activate conda environment
-source activate transformers
+source activate diffusers
 
 # get the directory where the bash script is located
 DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" >/dev/null 2>&1 && pwd )"
diff --git a/backend/python/diffusers/test.sh b/backend/python/diffusers/test.sh
index 072fb85b..421a1921 100644
--- a/backend/python/diffusers/test.sh
+++ b/backend/python/diffusers/test.sh
@@ -6,7 +6,7 @@
 export PATH=$PATH:/opt/conda/bin
 
 # Activate conda environment
-source activate transformers
+source activate diffusers
 
 # get the directory where the bash script is located
 DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" >/dev/null 2>&1 && pwd )"
diff --git a/backend/python/petals/Makefile b/backend/python/petals/Makefile
index 52ce15d2..bce64a90 100644
--- a/backend/python/petals/Makefile
+++ b/backend/python/petals/Makefile
@@ -1,11 +1,15 @@
 .PHONY: petals
 petals:
-	@echo "Creating virtual environment..."
-	@conda env create --name petals --file petals.yml
-	@echo "Virtual environment created."
+	$(MAKE) -C ../common-env/transformers
 
 .PHONY: run
 run:
 	@echo "Running petals..."
 	bash run.sh
 	@echo "petals run."
+
+.PHONY: test
+test:
+	@echo "Testing petals..."
+	bash test.sh
+	@echo "petals tested."
diff --git a/backend/python/petals/run.sh b/backend/python/petals/run.sh
index 64a1a66f..b436ed1c 100755
--- a/backend/python/petals/run.sh
+++ b/backend/python/petals/run.sh
@@ -9,10 +9,10 @@ export PATH=$PATH:/opt/conda/bin
 # if source is available use it, or use conda
 #
 if [ -f /opt/conda/bin/activate ]; then
-    source activate petals
+    source activate transformers
 else
     eval "$(conda shell.bash hook)"
-    conda activate petals
+    conda activate transformers
 fi
 
 # get the directory where the bash script is located
diff --git a/backend/python/petals/test.sh b/backend/python/petals/test.sh
new file mode 100644
index 00000000..42d1a045
--- /dev/null
+++ b/backend/python/petals/test.sh
@@ -0,0 +1,11 @@
+#!/bin/bash
+##
+## A bash script wrapper that runs the transformers server with conda
+
+# Activate conda environment
+source activate transformers
+
+# get the directory where the bash script is located
+DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" >/dev/null 2>&1 && pwd )"
+
+python -m unittest $DIR/test_petals.py
\ No newline at end of file
diff --git a/backend/python/petals/test_petals.py b/backend/python/petals/test_petals.py
new file mode 100644
index 00000000..a0a800e1
--- /dev/null
+++ b/backend/python/petals/test_petals.py
@@ -0,0 +1,76 @@
+import unittest
+import subprocess
+import time
+import backend_pb2
+import backend_pb2_grpc
+
+import grpc
+
+import unittest
+import subprocess
+import time
+import grpc
+import backend_pb2_grpc
+import backend_pb2
+
+class TestBackendServicer(unittest.TestCase):
+    """
+    TestBackendServicer is the class that tests the gRPC service.
+
+    This class contains methods to test the startup and shutdown of the gRPC service.
+    """
+    def setUp(self):
+        self.service = subprocess.Popen(["python", "backend_petals.py", "--addr", "localhost:50051"])
+        time.sleep(10)
+
+    def tearDown(self) -> None:
+        self.service.terminate()
+        self.service.wait()
+
+    def test_server_startup(self):
+        try:
+            self.setUp()
+            with grpc.insecure_channel("localhost:50051") as channel:
+                stub = backend_pb2_grpc.BackendStub(channel)
+                response = stub.Health(backend_pb2.HealthMessage())
+                self.assertEqual(response.message, b'OK')
+        except Exception as err:
+            print(err)
+            self.fail("Server failed to start")
+        finally:
+            self.tearDown()
+    def test_load_model(self):
+        """
+        This method tests if the model is loaded successfully
+        """
+        try:
+            self.setUp()
+            with grpc.insecure_channel("localhost:50051") as channel:
+                stub = backend_pb2_grpc.BackendStub(channel)
+                response = stub.LoadModel(backend_pb2.ModelOptions(Model="petals-team/StableBeluga"))
+                self.assertTrue(response.success)
+                self.assertEqual(response.message, "Model loaded successfully")
+        except Exception as err:
+            print(err)
+            self.fail("LoadModel service failed")
+        finally:
+            self.tearDown()
+
+    def test_text(self):
+        """
+        This method tests if the embeddings are generated successfully
+        """
+        try:
+            self.setUp()
+            with grpc.insecure_channel("localhost:50051") as channel:
+                stub = backend_pb2_grpc.BackendStub(channel)
+                response = stub.LoadModel(backend_pb2.ModelOptions(Model="petals-team/StableBeluga"))
+                self.assertTrue(response.success)
+                req = backend_pb2.PredictOptions(prompt="The capital of France is")
+                resp = stub.Predict(req)
+                self.assertIsNotNone(resp.message)
+        except Exception as err:
+            print(err)
+            self.fail("text service failed")
+        finally:
+            self.tearDown()
\ No newline at end of file