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NLP & Language · intermediate · concept 141 of 311 · Updated Nov 4, 2026

Semantic Caching

Semantic caching stores a model's answer next to an embedding of the question, then serves that stored answer when a new question lands within a similarity threshold, not only on an exact text match. It matters because users repeat the same questions in different words, and every avoided model call saves money and seconds. Example: a support bot asked "how do I reset my password" and later "password reset steps" returns one cached answer.

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Key terms

Embedding similaritySimilarity thresholdCache hit rateExact-match cacheTime to live (TTL)Cache invalidation

Where you meet it in the real world

Customer support bots, FAQ assistants, AI gateways, RAG apps with repeated questions, cost control for LLM APIs