[Market Trends] Is This the End of RAG? Anthropic's NEW Prompt Caching | Prompt Engineering

                              




📌 Revolutionizing Data Management: Anthropic's Prompt Caching Technology

Anthropic has introduced a new feature called prompt caching for its CLA models, significantly reducing costs by up to 90% and latency by up to 85%. This innovation enables developers to cache frequently used prompts between API calls, enhancing efficiency and making it particularly beneficial for handling large documents and extended conversations. Google previously pioneered context caching with their Gemini models. While there are similarities between the two, significant differences exist, notably in token management and cache duration. Anthropic's approach allows more granular control with shorter cache lifespans, potentially changing how large datasets are managed in cloud-based applications.


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