Explanations of how LLM prefix caching works, cache sizes in the tens of gigabytes, GPU memory constraints, and why traditional caching intuitions don't apply. Discussion of tiered caching and cold storage possibilities
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The one-hour cache window in tools like Claude Code highlights the massive resource constraints of KV caching, where internal model states can balloon to tens of gigabytes per session. Because these "save states" occupy scarce GPU memory, providers face an economic impossibility in maintaining them indefinitely, often resulting in "full cache misses" that unexpectedly spike token costs when users return to idle sessions. While some argue for tiered storage on SSDs or even client-side encrypted handoffs to mitigate these costs, experts point out that the massive bandwidth required to re-hydrate such large data volumes remains a fundamental architectural bottleneck. This technical reality has sparked a debate over whether developers should be shielded from these complexities or if a deep understanding of the quadratic nature of transformer inference is now a prerequisite for managing AI budgets.
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