Semantic Caching — Architecture & Economics
The single biggest cost lever. A 40% cache hit rate cuts your LLM spend nearly in half.
flowchart LR Q[" Query"] --> E[" Embed
Query"] E --> S{" Cache
Lookup
cosine ≥ 0.95?"} S -->|" HIT
(~$0.0001)"| C[" Cached
Response"] S -->|" MISS"| L[" LLM
(~$0.05)"] L --> W[" Write to
Cache
+ TTL"] W --> R[" Response"] C --> R style S fill:#fff7e6,stroke:#c47e0a,stroke-width:2px style C fill:#f0fff4,stroke:#2d8659,stroke-width:2px style L fill:#f0f7ff,stroke:#2b6cb0,stroke-width:2px style R fill:#f0fff4,stroke:#2d8659,stroke-width:3px
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