This is very interesting:
Anthropic just announced a game-changer for their API: Prompt caching.
Think of prompt caching like this: You're at a coffee shop. The first time you visit, you need to tell the barista your whole order. But next time? Just say "the usual."
That's prompt caching. Here's why it's a big deal...
It makes it cheaper and faster to call any large prompt components that you reference over and over again.
Specifically? Up to 90% cost reduction. 85% faster responses. Use cases are wild.
Think:
•Cheap conversations with chatbots that have encyclopedic knowledge
•Coding assistants that can efficiently read your entire codebase
•AI that can discuss entire books at crazy low latencies and costs
It means a bunch of AI-powered apps that were previously too expensive to run just became viable.
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