Is This the End of RAG? Anthropic's NEW Prompt Caching

Anthropic's new prompt caching with Claude can reduce costs by 90% and latency by 85%. This video explores its similarities and differences with Google's context caching in Gemini models, different use cases, and performance impacts. Learn about practical caching strategies, cost considerations, and whether context caching can replace Retrieval-Augmented Generation (RAG). LINKS: Blogpost: https://www.anthropic.com/news/prompt-caching API Docs: https://docs.anthropic.com/en/docs/build-with-claude/prompt-caching#caching-tool-definitions Gemini Context Cache: https://ai.google.dev/gemini-api/docs/caching?lang=python Notebook: https://github.com/anthropics/anthropic-cookbook/blob/main/misc/prompt_caching.ipynb 💻 RAG Beyond Basics Course: https://prompt-s-site.thinkific.com/courses/rag Let's Connect: 🦾 Discord: https://discord.com/invite/t4eYQRUcXB ☕ Buy me a Coffee: https://ko-fi.com/promptengineering |🔴 Patreon: https://www.patreon.com/PromptEngineering 💼Consulting: https://calendly.com/engineerprompt/consulting-call 📧 Business Contact: [email protected] Become Member: http://tinyurl.com/y5h28s6h 💻 Pre-configured localGPT VM: https://bit.ly/localGPT (use Code: PromptEngineering for 50% off). Signup for Newsletter, localgpt: https://tally.so/r/3y9bb0 TIMESTAMPS 00:00 Introduction to Prompt Caching with Claude 00:29 Understanding Prompt Caching Benefits 01:32 Use Cases for Prompt Caching 03:04 Cost and Latency Reductions 05:14 Comparing Claude and Gemini Context Caching 07:45 Best Practices for Effective Caching 11:22 Code Example and Practical Implementation All Interesting Videos: Everything LangChain: https://www.youtube.com/playlist?list=PLVEEucA9MYhOu89CX8H3MBZqayTbcCTMr Everything LLM: https://youtube.com/playlist?list=PLVEEucA9MYhNF5-zeb4Iw2Nl1OKTH-Txw Everything Midjourney: https://youtube.com/playlist?list=PLVEEucA9MYhMdrdHZtFeEebl20LPkaSmw AI Image Generation: https://youtube.com/playlist?list=PLVEEucA9MYhPVgYazU5hx6emMXtargd4z