The effects of prompt caching on Agentic coding
Prompt caching is a feature that Anthropic first offered on their API in 2024. It adds a cache for the tokens used Why it matters Without prompt caching every token in and out of the API must be processed and paid for in full. This is bad for your wallet, bad for the LLM hosting providers bottom line and bad for the environment. This is especially important when it comes to Agentic coding, where there are a lot of tokens in/out and important - a lot of token reuse, which makes it a perfect use case for prompt caching. ...