Simon Willison’s Weblog

Prompt caching with Claude (via) The Claude API now supports prompt caching, allowing you to mark reused portions of long prompts (like a large document provided as context). Claude will cache these for up to five minutes, and any prompts within that five minutes that reuse the context will be both significantly faster and will be charged at a significant discount: ~10% of the cost of sending those uncached tokens.

Writing to the cache costs money. The cache TTL is reset every time it gets a cache hit, so any application running more than one prompt every five minutes should see significant price decreases from this. If you app prompts less than once every five minutes you'll be losing money.

This is similar to Google Gemini's context caching feature, but the pricing model works differently. Gemini charge $4.50/million tokens/hour for their caching (that's for Gemini 1.5 Pro - Gemini 1.5 Flash is $1/million/hour), for a quarter price discount on input tokens (see their pricing).

Claude’s implementation also appears designed to help with ongoing conversations. Using caching during an individual user’s multi-turn conversation - where a full copy of the entire transcript is sent with each new prompt - could help even for very low traffic (or even single user) applications.

Here's the full documentation for the new Claude caching feature, currently only enabled if you pass "anthropic-beta: prompt-caching-2024-07-31" as an HTTP header.

Interesting to note that this caching implementation doesn't save on HTTP overhead: if you have 1MB of context you still need to send a 1MB HTTP request for every call. I guess the overhead of that HTTP traffic is negligible compared to the overhead of processing those tokens once they arrive.

One minor annoyance in the announcement for this feature:

Detailed instruction sets: Share extensive lists of instructions, procedures, and examples to fine-tune Claude's responses. [...]

I wish Anthropic wouldn't use the term "fine-tune" in this context (they do the same thing in their tweet). This feature is unrelated to model fine-tuning (a feature Claude provides via AWS Bedrock). People find this terminology confusing already, frequently misinterpreting "fine-tuning" as being the same thing as "tweaking your prompt until it works better", and Anthropic's language here doesn't help.