Claude's Prompt Caching: Slashing Dev Bills or Locked-In Trap?
Staring at skyrocketing API bills from endless prompt tweaks? Claude's prompt caching might finally hit the brakes. Or it might just be clever vendor lock-in dressed as savings.
β‘ Key Takeaways
- Prompt caching slashes input costs up to 90% and latency 85% for repeated large prefixes.
- Requires 1024+ tokens, 5-min TTL β useless for short or spaced-out calls.
- Great for RAG/batch, but Anthropic's play to lock in heavy users.
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Originally reported by Towards AI
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