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Equation 25 · Part 11 · The Economics and Physical Limits of Running AI Agents at Scale

addition

Cncached≈n pout oˉ+n pin w σ+pin γ σ n(n−1)2C_n^{\text{cached}} \approx n\,p_{\text{out}}\,\bar{o} + n\,p_{\text{in}}\,w\,\sigma + p_{\text{in}}\,\gamma\,\sigma\,\frac{n(n-1)}{2}
addition

What this part means

Add the term after the plus sign to the term or group before it.

Its job in the formula

Add the term after the plus sign to the term or group before it.

The passage around this formula

Prompt caching is the documented fix for exactly this, and it is worth being precise about what it fixes and what it does not. Anthropic’s automatic caching, recommended for multi-turn use, places a single cache marker at the end of a request; the system caches everything up to that marker, and the next request’s identical prefix is read from cache rather than reprocessed [ 2 ] . Anthropic’s documentation walks through exactly this pattern for a growing conversation: at each new turn, the system prompt and all prior turns are read from cache, and only the newest exchange is freshly written to cache for next time [ 2 ] . A cache read costs a tenth of the base input price; a five-minute cache…

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Learn the underlying idea

Addition combines quantities; subtraction measures the signed difference between them. Parentheses show what is combined before the rest of the expression is evaluated.

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Sources cited in the surrounding passage

These citations provide research context; check each source for the exact claim it supports.