The FRE|Nxt AI Glossary
Plain-English answers to the AI terms founders actually encounter in production. Each entry gives a 40 to 60 word definition, the one-sentence version, how it works, when to use it, and common mistakes. Written by practitioners who ship these systems.
Written by Ragavendra S, Founder of FRE|Nxt Labs. Last updated: April 25, 2026.
RAG (Retrieval-Augmented Generation)
A pattern that fetches relevant documents at query time and injects them into an LLM prompt so the model can answer from your data.
MCP (Model Context Protocol)
An open protocol from Anthropic that lets LLMs talk to tools, data sources, and apps through a standard client-server interface.
Prompt Caching
A server-side optimization where the model provider stores the prefix of your prompt so repeated calls skip re-processing and cost up to 90 percent less.
LLM Evals
Structured tests that score an LLM feature on real inputs so you can tell if a prompt, model, or pipeline change actually made things better.
Agentic Workflow
An LLM-driven loop that plans, calls tools, observes results, and iterates until a goal is met, instead of returning a single text completion.
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