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ModelTerms

Comparison

LLM Gateway vs Prompt Caching

LLM Gateway and Prompt Caching are both common AI/LLM terms but cover different ideas. Here is a quick side-by-side.

When you would reach for LLM Gateway

When you use multiple providers, need per-tenant cost attribution, or want centralized observability/PII policies.

LiteLLM proxy fronting OpenAI, Anthropic, and Bedrock with unified billing dashboards and automatic retry-on-fallback.

When you would reach for Prompt Caching

Whenever a prefix is reused across calls and exceeds ~1K tokens. The break-even point is low; the upside is large.

A long-context RAG app caches the system prompt + few-shot examples; per-call latency drops from 6s to 1.5s, cost drops ~80%.

Frequently asked

What is the difference between LLM Gateway and Prompt Caching?

LLM Gateway: An LLM gateway is a proxy layer that sits between application code and one or more LLM providers — handling auth, rate-limit retries, cost tracking, observability, prompt caching, model routing, and PII redaction. Prompt Caching: Prompt caching stores the KV-cache state of a long prefix (system prompt, large document, tool definitions) so subsequent calls that reuse it skip the prefill compute — cutting TTFT and cost by 50-90%.

When should I use LLM Gateway vs Prompt Caching?

When you use multiple providers, need per-tenant cost attribution, or want centralized observability/PII policies. Whenever a prefix is reused across calls and exceeds ~1K tokens. The break-even point is low; the upside is large.

Are LLM Gateway and Prompt Caching the same thing?

No. LLM Gateway is infrastructure; Prompt Caching is inference. They are related but address different parts of the AI stack.