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Technology

Prompt Caching

A performance optimization that stores and reuses the processed representation of repeated prompt prefixes. Reduces latency and cost when sending similar prompts — especially useful for system prompts and few-shot examples.

Why it matters

Many AI apps send the same big chunk of text over and over, like a long set of instructions or a reference document, in front of every user question. Prompt caching lets the model remember that processed prefix instead of reworking it each time. The result is noticeably faster responses and lower bills, which matters a lot for chatbots and tools that reuse the same background material constantly.

In practice

A coding assistant includes your project's style guide and key files at the start of every request. Without caching, the model reprocesses all of that each time you type. With prompt caching, it stores the processed version of that fixed prefix, so only your new question needs fresh work. Replies come back quicker and each call costs less, which adds up fast over a full day of coding.

Related terms

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