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Dictionary

Context Caching

Reusing pre-processed input across requests to cut cost and latency.

1 min readupdated 2026-07-04

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Anthropic and OpenAI cache expensive prefixes (long system prompts, docs) between calls. Cached tokens are ~10x cheaper and skip re-encoding — key for RAG and agent loops. Reusing pre-processed input across requests to cut cost and latency.

Reusing pre-processed input across requests to cut cost and latency. Anthropic and OpenAI cache expensive prefixes (long system prompts, docs) between calls. Cached tokens are ~10x cheaper and skip re-encoding — key for RAG and agent loops. In practice: A 50k-token system prompt costs $0.05 fresh but $0.005 cached across the next 5 minutes. This dictionary node is part of the Onexial knowledge graph and links to related concepts, workflows and tools below.
Definition
Anthropic and OpenAI cache expensive prefixes (long system prompts, docs) between calls. Cached tokens are ~10x cheaper and skip re-encoding — key for RAG and agent loops.
Example
A 50k-token system prompt costs $0.05 fresh but $0.005 cached across the next 5 minutes.
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What is Context Caching?

Anthropic and OpenAI cache expensive prefixes (long system prompts, docs) between calls. Cached tokens are ~10x cheaper and skip re-encoding — key for RAG and agent loops.

What is an example of Context Caching?

A 50k-token system prompt costs $0.05 fresh but $0.005 cached across the next 5 minutes.

Why does Context Caching matter for AI and automation?

Reusing pre-processed input across requests to cut cost and latency. It connects to the workflows, prompts and tool stacks linked on this page, so you can move from definition to execution without leaving Onexial.

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Related concepts

The vocabulary this page depends on.

  • Context Engineering

    Context engineering is the discipline of deciding exactly what information enters a model's context window, in what order and at what cost.

  • Cost Per Token

    The unit economics of LLM APIs.

  • MCP Resources

    MCP resources are addressable read-only context — files, records, docs — that a client can pull into the model instead of calling a tool.

  • MCP (Model Context Protocol)

    Open protocol that lets LLMs connect to tools, data sources and apps through a standard interface.

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Related workflows

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Related tool stacks

The tools that run it in production.

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