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Equation 25 · Part 14 · The Economics and Physical Limits of Running AI Agents at Scale

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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}
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What this part means

A raised number can be a power. When it is a label or bound, it selects a case or the upper limit of a sum; the formula’s structure distinguishes these uses.

Its job in the formula

A raised mark can be a power or an index. Its position and the surrounding notation determine which.

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

An exponent tells how a base is used in multiplication. In x³, x is the base and 3 is the exponent: x³ = x × x × x.

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Sources cited in the surrounding passage

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