How Prompt Caching works and how to use it

Book a call: https://calendly.com/itshassanaziz/discuss-a-project ==== ==== ==== WHAT'S THIS VIDEO ABOUT? I used over 1.3 billion Opus 5.5 tokens in the last week, which would cost $5,200 at API pricing but only about $260 because nearly all of them were cache reads. This video explains how prompt caching works (the model's internal state gets stored and reused, and exact prefix matching decides whether you get a hit), how it can cut LLM costs by 80 to 90%, and how it differs from semantic caching. If you're on a subscription, the same ideas help you stop burning through your weekly limits. Like, subscribe, & leave me a comment if you have a specific request. Thanks. ==== ==== ==== TIMESTAMPS 00:00 $5,200 vs $260 Token Bill 00:51 Why Prompt Caching Matters 01:42 Repetition in Every Prompt 03:18 What Gets Cached 04:50 Second Request & Cache Reuse 06:07 Hashing & Routing Under the Hood 07:24 Cache Hit vs Cache Miss 08:31 Exact Prefix Matching Rule 10:08 Prompt vs Semantic Caching 11:53 Using Both Caches Together WATCH THESE NEXT https://www.youtube.com/watch?v=2TVhf3UvhBw https://www.youtube.com/watch?v=j3aqbvLIBd4 https://www.youtube.com/watch?v=Z5jruHWHHjY ==== ==== ==== WHY LISTEN TO ME? Hey everyone, I'm Hassan. I run an AI/Automation and Software Development agency at hassandev.me. I've built custom workflows that save clients 20+ hours every week. I've helped businesses solve CRM issues that directly led to an increase of $430k CAD in quotations. I've scaled platforms to 100,000 users and beyond. I also enjoy making content and sharing what I learn with the world. I love to yap on YouTube, as you can see. I'm very active here, and on X, so if you want to reach out to me, leave a comment or DM me on X. MY LINKS Website: https://www.hassandev.me Portfolio: https://www.hassandev.me/work YouTube: https://www.youtube.com/@itshassanaziz?sub_confirmation=1 My Book: https://www.hassandev.me/designing-websites X / Twitter: https://x.com/intent/user?screen_name=nothassanaziz Instagram: https://www.instagram.com/hassansdev/ LinkedIn: https://www.linkedin.com/in/hassan-aziz-web