Is This the End of RAG? Anthropic’s NEW Prompt Caching

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Anthropic’s new prompt caching with Claude can reduce costs by 90% and latency by 85%. This video explores its similarities and differences with Google’s context caching in Gemini models, different use cases, and performance impacts. Learn about practical caching strategies, cost considerations, and whether context caching can replace Retrieval-Augmented Generation (RAG).

LINKS:
Blogpost: https://www.anthropic.com/news/prompt-caching
API Docs: https://docs.anthropic.com/en/docs/build-with-claude/prompt-caching#caching-tool-definitions
Gemini Context Cache: https://ai.google.dev/gemini-api/docs/caching?lang=python
Notebook: https://github.com/anthropics/anthropic-cookbook/blob/main/misc/prompt_caching.ipynb

? RAG Beyond Basics Course:
https://prompt-s-site.thinkific.com/courses/rag

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TIMESTAMPS
00:00 Introduction to Prompt Caching with Claude
00:29 Understanding Prompt Caching Benefits
01:32 Use Cases for Prompt Caching
03:04 Cost and Latency Reductions
05:14 Comparing Claude and Gemini Context Caching
07:45 Best Practices for Effective Caching
11:22 Code Example and Practical Implementation

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