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Prompt caching

noun

An API feature that stores repeated context, such as long instructions or documents, so later requests that reuse it are faster and cheaper.

In practice

Prompt caching: what it means for your business

Prompt caching matters for custom tools that send the same long context with many requests, such as a large set of instructions or a reference document. Storing that context means later requests that reuse it are processed faster and cost less. It is a technical optimisation for API builds rather than something people using the Claude apps need to think about.

Questions

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Does prompt caching reduce costs?

Yes, for API applications that reuse the same long context across many requests. The repeated part is cheaper and faster to process after it has been cached. Check Anthropic's documentation for current details.

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