Symbol gamma
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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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Equation 23 · AI Agents & Systems
The Economics and Physical Limits of Running AI Agents at Scale
This equation gives an approximation: it relates the quantities while allowing an approximation.
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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