KV cache billing dispute: realized-hit pricing may incentivize gaming, OpenRouter cited

charles_irl · x · 2026-10-29

cHHillee highlights a split in inference provider billing: most charge on realized KV cache hits, while Tinker bills on theoretical hits (1-hour TTL), closer to Anthropic's explicit TTL model for cache retention.

The author argues Tinker/Anthropic's approach makes more sense: under realized-hit pricing, inference engines that optimize for more cache hits actually reduce their own revenue — a misaligned incentive, with signs of such gaming already visible on OpenRouter.

The quoted post points to another direction: "an internet for the KV cache" — shipping a KV cache across the network can now be faster and cheaper than recomputing it.

Original post →

More from Infra

Infra channel →