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What Is Prompt Caching? How It Works and What It Saves

calendar_today June 17, 2026 person Amnic, AI for FinOps domain amnic

Prompt caching reuses a repeated prompt prefix to cut LLM input costs up to 90% without changing output. Explains how it works, what it costs and when it pays off, given that providers otherwise recompute and charge for the entire prompt on every call.

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