Anthropic Claude has just launched Prompt Caching, which is a powerful option that optimizes AI interactions by allowing Claude models to store and reuse previously processed information.
With Prompt Caching, users can provide Claude with more extensive background knowledge and example outputs – all while reducing costs by up to 90% and latency by up to 85% for long prompts.
The new release can resolve some of the significant challenges in AI context handling, making interactions more efficient and cost-effective.
Challenges with Current AI Context Handling
Previously, when interacting with an AI model, the entire conversation history must be sent to the LLM for each new query to maintain the conversation context for the AI model.
This repetitive processing may lead to slower responses, increased latency, and higher operational costs, especially during long conversations or when dealing with complex tasks.
How Prompt Caching Works
Prompt Caching improves AI efficiency by allowing Claude to store and reuse stable contexts, such as system instructions or background information.
When you send a request with Prompt Caching enabled:
- The system checks if the start of your prompt is already cached from a recent query.
- If it is, the cached version is used, speeding up responses and lowering costs.
- If not, the full prompt is processed, and the prefix is cached for future use.
This is especially useful for prompts with many examples, large contexts, repetitive tasks, and long multi-turn conversations. By reusing cached information, Claude can focus on new queries without reprocessing the entire conversation history, enhancing accuracy for complex tasks, especially when refining previous outputs.
More details can be found here
Why Use Prompt Caching?
With Prompt Caching, you can get up to 85% faster response times for cached prompts and potentially reduce costs by up to 90%.
Please note: while creating the initial cached prompt incurs a 25% higher cost than the standard API rate, subsequent requests using the cached prompt will be up to 90% cheaper than the usual API cost.
Here’s what you need to know:
- The cache has a lifetime (TTL) of about 5 minutes. This lifetime is refreshed each time the cached content is used.
- The minimum cachable prompt length is 1024 tokens for Claude 3.5 Sonnet and Claude 3 Opus, and 2048 tokens for Claude 3.0 Haiku (support for caching prompts shorter than 1024 tokens is coming soon)
- You can set up to 4 cache breakpoints within a prompt.
How Prompt Caching Can Be Used?
Prompt caching is useful for scenarios where you want to send a large prompt context once and refer back to it in subsequent requests:
This is especially useful for:
- Analyze long documents: process and interact with entire books, legal documents, or other extensive texts without slowing down.
- Help in coding: keep track of large codebases to provide more accurate suggestions, help with debugging, and ensure code consistency.
- Set up hyper-detailed instructions: allow for the inclusion of numerous examples to improve AI output quality.
- Solve complex issues: address multi-step problems by maintaining a comprehensive understanding of the context throughout the process.
More applications can be referred at Prompt Caching with Claude.
How To Enable Automatic Prompt Caching on TypingMind
- Go to Model Settings
- Expand the Advanced Model Parameter
- Scroll down to enable the “Prompt Caching” option
Important notes:
- Avoid using Prompt Caching with Dynamic Context via API, as changing system prompts cannot be cached.
- For further details, please refer to the official Claude Prompt Caching documentation.
Final Thought
Claude Prompt Caching can bring huge benefits that can resolve core limitations in other AI models.
By reducing the need for repetitive processing, Prompt Caching helps improve efficiency, reduce costs, and unlock new possibilities for how AI can be applied in real-world scenarios.