---
type: Glossary Term
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"
category: infrastructure
language: en
timestamp: "2026-02-05T22:09:10.974Z"
---

# 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.