Skip to main content
Home / AI Glossary / Prompt Caching

Prompt Caching

An LLM API feature that caches static parts of a prompt (system instructions, long context) so repeat requests skip re-processing those tokens, cutting cost and latency.

What Is Prompt Caching?

Available on Anthropic, OpenAI, and Google APIs. The cached prefix is stored on the provider for 5-60 minutes. Re-sending the same prefix incurs a small fraction of the input-token cost (often 10% or free). Useful for chatbots with long system prompts, RAG apps with stable retrieved context, and agents that loop over the same tool definitions.

How Groovy Web Uses This

We turn on prompt caching by default in our production agent and RAG systems. On long-context apps it cuts client inference cost by 60-90%.

Related Terms

Context Window Inference Retrieval-Augmented Generation (RAG) Token (AI/LLM)

Need Help with This?

Our AI-First engineers build production systems using Prompt Caching technology. Talk to us.

Get Free Assessment
Start a Project

Got an Idea?
Let's Build It Together

Tell us about your project and we'll get back to you within 24 hours with a game plan.

Schedule a Call Book a Free Strategy Call
30 min, no commitment
Response Time

Mon-Fri, 8AM-12PM EST

4hr overlap with US Eastern
247+ Projects Delivered
10+ Years Experience
3 Global Offices

Follow Us

1-week risk-free trial — keep the code

Hire Senior AI Engineers
Production-Grade. Your US Hours.

For startups & product teams

One senior engineer, AI-accelerated — owns architecture, security, and the last 20% AI tools leave broken. No recruitment, no ramp-up.

Trusted by 200+ startups worldwide

Production-grade delivery
4hr live US overlap
Start in 48 hours
Start Your Risk-Free Trial

No long-term commitment · 100% IP yours · Cancel anytime