Prompt Caching for Anthropic and OpenAI Models: Building Cost-Efficient AI Systems

Large Language Models (LLMs) have become a foundational component for modern AI applications, from developer copilots and documentation assistants to advanced troubleshooting tools. As these applications scale, one challenge quickly becomes apparent: token costs can grow rapidly when large prompts are repeatedly sent to the model . A common architecture for production AI systems includes long system instructions, tool schemas, retrieved knowledge base documents, and conversation history.