How prompt caching actually changes the LLM cost math
Anthropic charges 10% of input for cache reads, with a 1.25x write fee. OpenAI auto-caches above 1024 tokens. The math changes which LLM is cheapest -- here is when.
4 posts tagged "prompt-caching".
Every post tagged "prompt caching" in the journal. Tag archives are auto-generated from post frontmatter -- one entry per unique tag across non-draft posts. Currently 4 posts share this tag. Use the category filter above to scope by editorial type.
Anthropic charges 10% of input for cache reads, with a 1.25x write fee. OpenAI auto-caches above 1024 tokens. The math changes which LLM is cheapest -- here is when.
Showing 3 of 4 posts — page 1 of 1
Anthropic's compaction API summarizes an agent's history when it hits a token threshold. How it works, the billing pass you don't see, and when it backfires.
Anthropic's context editing clears stale tool results from an agent's window, cutting token use up to 84%. How it works, the config, and the prompt-cache catch.
The $/M input/output sticker hides cache-write premiums, a tokenizer tax, context surcharges, invisible reasoning tokens, and more. Ten verified costs, with proofs.