I have a large database (potentially in the millions of records) with relatively short strings of text (on the order of street address, names, etc).
I am looking for
Pairwise comparisons of all the records is O(N^2) not exponential. There basically two ways to go to cut down on that complexity.
The first is blocking, where you only compare records that already have something in common that's easy to compute, like the first three letters or a common n-gram. This is basically the same idea as Locally Sensitive Hashing. The dedupe python library implements a number of blocking techniques and the documentation gives a good overview of the general approach.
In the worse case, pairwise comparisons with blocking is still O(N^2). In the best case it is O(N). Neither best or worst case are really met in practice. Typically, blocking reduces the number of pairs to compare by over 99.9%.
There are some interesting, alternative paradigms for record linkage that are not based on pairwise comparisons. These have better worse case complexity guarantees. See the work of Beka Steorts and Michael Wick.