AI Glossary
Prompt caching
Also called context caching
What does “Prompt caching” mean?
Prompt caching: A provider feature that saves the processed form of a repeated prompt prefix, such as a long system prompt or reference document, so later requests that start the same way skip reprocessing it. This can reduce both latency and cost. Cached content typically expires after a period without use.

What is an example of “Prompt caching”?
A coding assistant that sends the same large codebase summary with every question can cache it instead of paying to process it each time.