How does KV-cache optimization impact AI agent costs?

Question

Accepted Answer

KV-cache optimization creates dramatic cost savings, with cached input tokens costing 0.30 USD/MTok versus 3 USD/MTok for uncached tokens—a 10x difference. This directly affects both latency and cost in production AI agents.

NuggetsAI

NuggetsAI

KV-Cache Hit Rate Drives AI Agent Performance