Prompt Caching Explained: Stop Overpaying for AI Agents

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Prompt caching can cut the input cost of long AI agent sessions dramatically—but only when your harness preserves reusable prompt prefixes. This video explains what prompt caching actually stores, why agent costs compound across turns, how provider behavior differs, and the implementation mistakes that invalidate your cache. --- 🔗 *Links* - Written tutorial: https://alejandro-ao.com/tutorials/prompt-caching/ - Tau coding agent: https://github.com/huggingface/tau - Pi coding agent: https://github.com/badlogic/pi-mono - Hugging Face Inference Providers: https://huggingface.co/docs/inference-pr