AIHero

    The Model

    Cache tokens

    Input tokens the provider has cached from a previous request via its prefix cache, billed at a much lower rate.

    Matt Pocock
    Matt Pocock

    Input tokens the provider has cached from a previous model provider request so it doesn't have to re-process them. When consecutive requests share a prefix, the provider reuses the work via its prefix cache and bills the cached portion at a much lower rate. The lever that makes long sessions affordable — without it, every turn re-pays for the whole history.

    The reason this matters is how sessions are billed. The model is stateless, so every request resends the entire conversation — system prompt, every message, every tool result — as input tokens. By turn fifty, each request carries fifty turns of history, and you'd pay full rate on all of it, every time. The cache changes the maths: tokens the provider has already processed in an identical prefix are billed as cache tokens, often at a tenth of the input rate or less. On a long session, most of what you send is cache tokens, and the bill stays sane.

    An example shows when tokens are cached and when they're not. Each letter stands for a block of conversation content; each request sends the conversation so far:

    Request sendsCachedBilled at full rateWhy
    ABnothingABFirst request — nothing to match against
    ABCABCAB is an exact prefix of the previous request
    ABCDABCDPrefix still intact
    AXCDAXCDAn edit changed B to X; the match fails there

    The cache is fragile in a specific way: it matches exact prefixes. If anything changes earlier in the conversation — the harness reorders content, a timestamp updates, a file's representation shifts — the cache misses from that point onward and everything after it is billed at full input rate. Caches also expire after a few minutes of inactivity, so a session resumed after a long pause re-pays its history once. When a session's cost jumps without an obvious cause, compare cache tokens to input tokens in the usage report — a broken cache shows up there first.

    Usage:

    "Cost on long sessions is brutal — eight bucks for a refactor."

    "Check the cache tokens. If the harness is reordering the system prompt or files between turns, the prefix breaks and you re-pay full input rate every request."

    Want more than vocabulary?

    Join AI Hero for practical skills, thinking on AI engineering, and resources that keep you ahead of the curve.

    No spam. Unsubscribe anytime.

    Share