Prompt caching cuts premium LLM routing costs

While premium models like Claude Fable 5 offer unmatched reasoning, using them continuously in agentic loops is cost-prohibitive. Implementing hierarchical agent routing with prompt caching is the key to making high-tier models economically viable.

* **Escalation Routing:** Restricting premium models to complex escalation points prevents waste on simple, repetitive tasks that cheaper models can handle.

* **Prompt Caching Value:** Caching the long, static advisor context ensures that subsequent escalations only pay for incremental dynamic tokens.

* **Hybrid Architectures:** Developers should structure their orchestrations to separate the high-frequency execution loop from the low-frequency reasoning loop.