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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)

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