Prompt Caching with Claude

Anthropic has introduced prompt caching for its Claude API, allowing developers to store frequently used context between API calls. This feature aims to enhance performance by reducing costs by up to 90% and latency by up to 85% for lengthy prompts. Currently in public beta for Claude 3.5 Sonnet and Claude 3 Haiku, with Claude 3 Opus support expected soon, prompt caching is particularly beneficial for applications such as conversational agents, coding assistants, large document processing, and detailed instruction sets. By caching context, users can significantly improve response times and reduce costs associated with multiple API calls. Early adopters have reported notable improvements in speed and cost efficiency across various use cases. The pricing structure for cached prompts includes a higher cost for writing to the cache but a significantly lower cost for reading from it. Notion is one of the companies leveraging this feature to enhance its AI assistant, Notion AI, resulting in a more efficient user experience. Developers interested in utilizing prompt caching can access the public beta through Anthropic's documentation and pricing page.

- Prompt caching reduces costs by up to 90% and latency by up to 85%.

- Currently available for Claude 3.5 Sonnet and Claude 3 Haiku, with Claude 3 Opus support coming soon.

- Effective for conversational agents, coding assistants, and large document processing.

- Pricing includes higher costs for cache writing and lower costs for cache reading.

- Notion is implementing prompt caching to improve its AI assistant's performance.