Prompt caching

Context Engineering in 2026 — Louis-François Bouchard, Omar Solano & Samridhi Vaid, Towards AI

Context Engineering in 2026 — Louis-François Bouchard, Omar Solano & Samridhi Vaid, Towards AI

Experiments with an AI tutor reveal that not compacting context often outperforms summarization, leading to better recall, lower cost, and faster responses, primarily due to LLM API prompt caching. Compaction invalidates the cache, making it unexpectedly expensive. While cloud environments benefit from full history, local hardware limits necessitate compaction, highlighting the need to prioritize actual constraints over default compaction strategies.

Build Hour: Valuemaxxing with GPT-5.6

Build Hour: Valuemaxxing with GPT-5.6

This Build Hour focuses on "value maxing" with GPT-5.6, shifting from simply tracking token usage to measuring the actual outcomes and efficiency gained from AI. It covers how to select the right GPT-5.6 model (Sol, Terra, Luna) based on intelligence, latency, and cost, and provides practical strategies for optimizing cost-performance. Key topics include leveraging programmatic tool calling, prompt caching, persistent reasoning, and context compaction for API users, along with CodeX-specific tips. A customer spotlight on Ploy demonstrates real-world application, showcasing their migration to GPT-5.6 Sol, which resulted in 2.2x faster builds at 27% lower cost through advanced caching and tool optimization techniques.

CAG vs Long Context: How AI Models Use and Remember Information

CAG vs Long Context: How AI Models Use and Remember Information

Martin Keen explains how Long Context and Cache Augmented Generation (CAG) serve as powerful alternatives to RAG for providing external knowledge to LLMs. This summary details the mechanics of each approach, the role of the KV cache, the practical application through prompt caching, and the trade-offs in performance, cost, and latency for real-world AI workloads.

Build Hour: Prompt Caching

Build Hour: Prompt Caching

Explore prompt caching to significantly reduce latency and costs for your AI applications. This guide breaks down the mechanics of KV caching, best practices for maximizing cache hits using `prompt_cache_key` and the Responses API, and real-world implementation insights from the agentic development platform, Warp.