Page 2 of 8~96 min topic

Prompt caching

Understand the mechanism

Pin a stable prefix, enable provider or explicit cache, send only varying suffixes, bill/read cache hits differently, invalidate when prefix bytes change.

~12 min this pageMechanism

1Learn the idea

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Stepwise path

Pin a stable prefix, enable provider or explicit cache, send only varying suffixes, bill/read cache hits differently, invalidate when prefix bytes change.

Read the prompt caching path as a pipeline for the policy-manual assistant. At each stage, name the representation, the owner, and how information can be lost. Identifiers must mark prompt versions, model versions, indexes, and policies so “randomness” is not the default explanation for every bug in prompt caching.

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Numeric anchor

without caching: 12.3M input tokens/day; with 90% prefix hits: 1.2M uncached prefix + 0.3M suffix = 1.5M full-price-equivalent tokens before cache-read pricing Scoped specifically to prompt caching / policy-manual assistant / mechanism.

Keep the unit and the denominator visible when you discuss prompt caching. A percentage without a base, or a latency without a percentile, hides the failure mode this chapter cares about on the policy-manual assistant.

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What the mechanism does not guarantee

Learned stages estimate; deterministic stages enforce. A fluent result from the policy-manual assistant does not prove prompt caching used the right evidence. Preserve intermediates when privacy allows—candidate lists, traces, scores, citations—so you can see the first broken stage in the prompt caching path.

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Make it operational

Operational correctness for prompt caching includes deadlines on the policy-manual assistant. If stages that feed this workload sum past the user’s patience, trim earlier—usually pack less, retrieve less, or parallelize—before blaming the model vendor for prompt caching. Mechanism diagrams that ignore time are incomplete.

Also pin one numeric memory from this prompt caching chapter: without caching: 12.3M input tokens/day; with 90% prefix hits: 1.2M uncached prefix + 0.3M suffix = 1.5M full-price-equivalent tokens before cache-read pricing That number is not decoration; it is a template for how claims about prompt caching on the policy-manual assistant should look in design docs. Scoped specifically to prompt caching / policy-manual assistant / mechanism.

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Common mix-ups

People confuse prompt caching with neighboring buzzwords when debugging the policy-manual assistant. Before changing prompts, ask whether the broken stage was evidence gathering, the prompt caching judgment itself, validation, or the product action. Fixing the wrong stage creates folklore (“we tried prompt caching and it failed”) that blocks the next team on the policy-manual assistant. Scoped specifically to prompt caching / policy-manual assistant / mechanism.

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Rehearsal (prompt-caching/mechanism)

Write a five-line artifact for this page: goal, inputs, check, owner, stop rule. Invent one fluent failure that the check would catch. Keep details specific to prompt caching rather than generic AI advice.

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Before you start

Why this matters

Without jargon, list the intermediate artifacts you would store for one policy-manual assistant request involving prompt caching so a teammate could replay it tomorrow.

In the wild

See how this idea shows up as a product and a company — then come back to the lesson. Skills transfer across vendors.

Check your understanding

Page assessment

Answer from memory. Completion is saved from this evidence, not from opening the next page.

1. What is one idea from this page you would apply, and what evidence would you check?

All responses are required.