Prompt caching is a technique used by LLM providers like Anthropic, OpenAI, Google Gemini, and Amazon Bedrock to reduce costs and latency by reusing previously processed input tokens. This method works by identifying identical prefixes in new requests and serving them from a cache instead of re-processing them, effectively lowering the cost for these cached tokens. The cache hit is dependent on byte-identical prefixes, meaning any change in system prompts, tool order, or API keys can invalidate the cache. This post details how prompt caching functions across these platforms, provides code examples, and outlines common reasons why caches may not be effective. AI
IMPACT Reduces operational costs and latency for LLM users by optimizing input processing.
RANK_REASON The item explains a technical feature of LLM infrastructure and product offerings, not a new release or major industry event.
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