---
type: "GlossaryTerm"
title: "Prompt Caching"
description: "A technique that stores frequently used context in an AI model's memory, drastically reducing latency and costs for repetitive queries."
resource: "https://www.contextstudios.ai/glossary/prompt-caching"
language: "en"
tags: ["infrastructure"]
generated:
  by: "process:contextstudios-md/1"
  at: "2026-10-08T20:56:44.820Z"
status: "stable"
---

# Prompt Caching

A technique that stores frequently used context in an AI model's memory, drastically reducing latency and costs for repetitive queries.

## Business Value



Reduces API costs by up to 90% for high-frequency applications.

## Context Studios Perspective



Enterprise AI is expensive at scale. We implement Prompt Caching to ensure your RAG systems aren't just intelligent, but also financially sustainable.