
LLM Costs Soaring? Semantic Caching Slashes Bills by 73%
Semantic caching, an AI technique that focuses on the meaning of queries rather than exact wording, can drastically reduce LLM API costs, as demonstrated by a real-world example achieving a 73% reduction. This approach addresses the issue of users posing the same question in different ways, which bypasses traditional exact-match caching and incurs unnecessary LLM processing fees, highlighting the importance of understanding semantic similarity for efficient AI application.
















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