Tag: performance

Your LLM API bills are eating your budget because you are caching the wrong thing. Most teams cache responses when they should cache prompts. Anthropic's prompt caching cuts costs by up to 90% and reduces latency by 85% by reusing processed context instead of reprocessing it every time.

Most companies over-engineer real-time AI systems by focusing on technical latency instead of user perception. Research by Jakob Nielsen confirms the difference between 50ms and 200ms response time rarely matters to users, but infrastructure complexity differs enormously. Here is how to build streaming AI that feels instant without breaking budget constraints.