Anthropic has introduced a prompt caching feature for its Claude models, which can reduce API costs by up to 90% and latency by 80%. This feature allows developers to cache frequently used context, such as system instructions or reference documents, and reuse them at a significantly lower cost. The caching mechanism works by saving a prefix of the prompt to a temporary cache, with different pricing for writing to and reading from the cache. The guide provides Python code examples for implementing prompt caching with Claude 3.5 Sonnet, including caching large reference documents and managing multi-turn conversations. AI
IMPACT Reduces operational costs for developers using Claude, potentially accelerating adoption of complex applications.
RANK_REASON Product feature announcement for an existing model.
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