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Tharretoday at 3:29 PM1 replyview on HN

How could that possibly work? Deepseek was undercutting every other provider by an order of magnitude on cached tokens.

Do they just set a super low caching time and hope that drops effective cache rates low enough? Do all other providers somehow overcharge by that much? Are they just going to sell it as a loss leader?


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lcampbelltoday at 3:45 PM

> Do all other providers somehow overcharge by that much?

This, I think. Cached inputs have an opportunity cost (keeping the KV cache until use) but a hit is basically free. “Basically” - if the cache is offloaded to system RAM or NVMe there’s some scheduling overhead.

From a consumer viewpoint a more interesting metric than the raw costs is

    cached cost * hitrate + input cost * (1 - hitrate)
from a personal standpoint rather than a per-provider one (e.g. if OpenRouter is blindly dispatching your requests you might have a bad time).
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