Microsoft has announced the Phi-3 family of open small language models (SLMs), touting them as the most capable and cost-effective of their size available. The innovative training approach developed by Microsoft researchers has allowed the Phi-3 models to outperform larger models on language, coding, and math benchmarks.

“What we’re going to start to see is not a shift from large to small, but a shift from a singular category of models to a portfolio of models where customers get the ability to make a decision on what is the best model for their scenario,” said Sonali Yadav, Principal Product Manager for Generative AI at Microsoft.

The first Phi-3 model, Phi-3-mini at 3.8 billion parameters, is now publicly available in Azure AI Model Catalog, Hugging Face, Ollama, and as an NVIDIA NIM microservice. Despite its compact size, Phi-3-mini outperforms models twice its size. Additional Phi-3 models like Phi-3-small (7B parameters) and Phi-3-medium (14B parameters) will follow soon.