Prompt caching
Weigh the tradeoffs
Prompt caching becomes useful when you can predict its behavior, measure it, and name its limits.
Before you start
Why this matters
Imagine you must cut either latency, cost, or error rate by 30% for Prompt caching. Which goal would conflict with another? Write the conflict before reading.
1Learn the idea
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There is no free setting
A longer cached prefix can save more input work but may carry irrelevant context and increase uncached misses when any early token changes. Explicit caches improve control but require lifecycle management. Savings depend on repetition, provider pricing, and whether latency is dominated by input processing or output generation.
Tradeoffs become manageable when expressed on a shared scorecard. Record task quality, p95 latency, unit cost, operational burden, and risk exposure. Do not collapse them immediately into one number; a weighted score can hide an unacceptable safety or privacy threshold. First mark non-negotiable constraints, then optimize among the surviving options.
Consider the mechanism when judging a trade. Transformer inference computes attention keys and values for each prefix token. A provider can retain or recognize that prefix state and skip recomputing it on later requests whose bytes, ordering, model, and cache rules match. The changing user message belongs after the stable prefix. Cache lifetime, minimum prefix length, and discount rules are provider-specific. That explains why a control can improve one stage while degrading the whole pipeline. Test at the system boundary seen by the user, not only inside the component. A locally faster retriever, sampler, or model does not help if queueing, retries, validation, or human review dominates end-to-end time.
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Apply it to a concrete case
A 12,000-token policy manual is shared by 1,000 daily requests; each request adds 300 unique tokens. Moving the manual before the user message makes the 12,000-token prefix reusable while the 300-token suffix stays dynamic.
The worked number is 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. State the unit and denominator whenever you report it. A percentage without a denominator can conceal a tiny sample; a latency without a percentile can conceal slow users; a similarity score without a labeled task can conceal irrelevant neighbors. Compare the observed value with a threshold chosen before seeing the final test result.
Now test the tempting shortcut. Suppose the team optimizes only the most visible metric. The result may look better while the system becomes less trustworthy. The reason is concrete: A longer cached prefix can save more input work but may carry irrelevant context and increase uncached misses when any early token changes. Explicit caches improve control but require lifecycle management. Savings depend on repetition, provider pricing, and whether latency is dominated by input processing or output generation. This is why the decision record must include both the intended gain and the tolerated regression. If the tolerated regression is unknown, the change is not ready for a consequential workflow.
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Decision rules
- Prefer a measured baseline over a persuasive demo.
- Keep versions, inputs, and thresholds reproducible.
- Separate syntactic success from semantic correctness and authorization.
- Escalate or abstain when evidence falls outside the contract.
- Re-evaluate when data, traffic, models, providers, or user goals change.
These rules turn the topic into an engineering decision rather than a slogan. They also make disagreement productive: another person can challenge the assumptions, rerun the evaluation, and reach a documented conclusion.
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Make the decision reversible
Write two candidate designs and place each on a small Pareto chart with quality on one axis and cost or latency on the other. A design is dominated when another is at least as good on every measured dimension and better on one. Eliminate dominated choices, then apply hard constraints such as privacy, authorization, or an SLO. For the remaining choice, define a rollback trigger before launch. Reversibility matters because estimates can be wrong: a feature flag, versioned index, pinned model, or shadow run can turn an uncertain tradeoff into a controlled experiment.