AI Architecture
Prompt Caching & KV-Cache Reuse: Cutting LLM Costs by up to 90%
Master Anthropic and Gemini Prompt Caching to slash API bills and reduce latency on long documents, system instructions, and multi-turn chats.
3 min
How Prompt Caching Works
When sending repeated large contexts (e.g. 50,000-token system instructions or legal documents), providers cache the Key-Value (KV) activations on GPU memory. Subsequent requests reuse cached tokens at up to 90% discount with sub-second response times.