Evaluation, Testing & Optimization·Task 4.5·Bloom: apply·Difficulty 3/5·8 min read·Updated 2026-07-14

Prompt Caching for Cost and Latency Reduction

Optimize token usage, latency, and cost-performance trade-offs

SUBy Solomon UdohReviewed by Solomon UdohAI-assisted · human-reviewed
In short
Prompt caching is most effective when the system prompt is long and stable across many requests. It requires explicit cache_control markers, and cache writes cost more per token than standard input on first use, while cached input tokens are billed at the cache read rate on subsequent requests. The default cache TTL is short, on the order of minutes; workloads with request frequency lower than the TTL will not realise consistent savings, and cached content that must reflect live state creates a consistency-window risk.

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