Claude Prompt Caching Released
Narrative
Cache long prompts for reuse. 90% cost reduction for repeated context. Sub-second response times. Automatic cache management.
Reality
Caching works as described. Massive cost savings for agentic workflows with long system prompts. 75% cost reduction typical. Latency improvement significant. Competitive differentiator.
Implication
Changed economics of agentic AI. Long context became affordable. Enabled new use cases. Other providers rushed similar features. API optimization became competitive dimension.