Why Prompt Caching is the Secret to Slashing Your AI Costs By 90%

Prompt caching helps reduce LLM costs by reusing KV vectors from repeated prompts instead of recomputing them.

It skips much of the expensive prefill phase, which lowers latency and improves response speed.

The article also covers related storage and architecture optimizations such as Multi-Head Latent Attention and distributed disk arrays.

Better cache management can make shared or repetitive workflows much more efficient, including products like Claude Code and GPT Realtime 2.