Anthropic's prompt caching feature can cut the cost of long prompts by up to 90% and reduce latency by as much as 85%. The technology lets developers cache frequently used context between API calls, giving Claude more background knowledge and examples to work with. Prompt caching is now in public beta for Claude 3.5 Sonnet and Claude 3 Haiku models, with support for Claude 3 Opus on the way. The feature is a good fit for chat agents, coding assistants, long document processing, detailed instruction sets, agent-based search and tool usage. It also works well for answering questions about books, papers, documentation, and podcast transcripts, Anthropic says. Google also offers prompt caching.
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