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    Technology

    Context Caching

    Also known as:
    Prompt Caching
    KV Cache
    Prefix Caching
    Context Reuse
    Updated: 2/12/2026

    An optimization technique that caches computed attention states (key-value pairs) for repeated contexts – saves compute and reduces latency for similar queries.

    Quick Summary

    Game changer for RAG and agent systems: Anthropic, OpenAI, Google offer native prompt caching. Reduces costs by 50-90% for recurring contexts.

    Explanation

    In transformer models, a key-value pair is computed for each token. With context caching, these are stored for system prompts, RAG documents, or frequent prefixes. Subsequent requests skip recalculation.

    Marketing Relevance

    Game changer for RAG and agent systems: Anthropic, OpenAI, Google offer native prompt caching. Reduces costs by 50-90% for recurring contexts. Critical for cost-effective enterprise AI.

    Example

    A RAG system with 50,000 token documentation: Without caching, every query pays for all tokens. With context caching, documentation is computed once – follow-up queries only cost new user questions. 80% cost reduction.

    Common Pitfalls

    Cache invalidation on context changes. Not all providers support it. Memory overhead for cache storage. TTL management needed. Only works with exactly matching prefix.

    Origin & History

    Context Caching is an established concept in the field of Technology. The concept has evolved alongside the growing importance of AI and data-driven methods.

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