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UPDATExAI2026-07-24

xAI Cuts Grok 4.5 Prompt Cache Pricing by 40%, Reduces Costs to $0.30 per 1M Tokens

Key Takeaways

  • ▸Grok 4.5 prompt cache pricing reduced 40%, from $0.50 to $0.30 per 1 million tokens
  • ▸Enhanced cost efficiency for high-volume API users and enterprise deployments relying on prompt caching
  • ▸Competitive pricing move in the growing market for large language model APIs and inference services
Source:
Hacker Newshttps://twitter.com/TimoteiMolnar/status/2080738447418065374↗
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Summary

xAI has announced a significant price reduction for Grok 4.5's prompt cache feature, dropping the cost from $0.50 to $0.30 per 1 million tokens. This 40% reduction makes cached prompts substantially more cost-effective for developers and enterprises using the platform, particularly benefiting high-volume use cases where prompt caching can significantly reduce API expenses.

The update reflects xAI's competitive positioning in the generative AI market, where cost optimization has become a key differentiator among LLM providers. Prompt caching allows developers to store and reuse large context windows without repeatedly processing identical token sequences, which is especially valuable for use cases such as document processing, code analysis, multi-turn conversations with consistent system prompts, and other applications that rely on large fixed context.

Large Language Models (LLMs)Generative AIMarket Trends

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