Published 07:45 IST, April 24th 2024

Microsoft Unveils Cost-Effective AI Model "Phi-3-mini" to Target Broader Clientele

The Phi-3-mini model is readily available on Microsoft's Azure cloud service platform, as well as on other prominent platforms.

Reported by: Business Desk
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Microsoft Windows AI integration | Image: Pixabay

Microsoft’s AI Model: Microsoft has launched its latest innovation, the Phi-3-mini, a lightweight artificial intelligence model aimed at expanding its customer base by offering more affordable options. This new version, part of the small language models (SLM) series, marks the first of three models set for release by the tech giant, highlighting its commitment to advancing technology with broad-reaching impacts.

According to Sébastien Bubeck, Microsoft's vice president of GenAI research, the Phi-3-mini stands out for its significant cost reduction compared to similar models in the market. Bubeck emphasized that the cost difference is not marginal but rather substantial, potentially up to 10 times cheaper, making it an attractive choice for organizations with limited resources.


Designed to handle simpler tasks, SLMs like Phi-3-mini offer enhanced accessibility for businesses looking to leverage AI technologies without extensive investment requirements. Microsoft's move to offer these cost-effective solutions reflects its strategy to democratize AI and make it more accessible across various industries.\

Phi-3-mini Model 


The Phi-3-mini model is readily available on Microsoft's Azure cloud service platform, as well as on other prominent platforms such as the Hugging Face machine learning model platform and Ollama, a framework for local machine model deployment. Moreover, Microsoft has optimized Phi-3-mini for Nvidia's GPUs and integrated it into Nvidia's software tool Nvidia Inference Microservices (NIM), enhancing its versatility and performance across different computing environments.

This announcement follows Microsoft's recent $1.5 billion investment in UAE-based AI firm G42, signalling the company's continued commitment to advancing AI capabilities globally. Additionally, Microsoft has previously partnered with startups like Mistral AI to integrate their models into its Azure cloud computing platform, further enriching its AI ecosystem.


With the launch of Phi-3-mini and its ongoing investments and partnerships in the AI space, Microsoft aims to solidify its position as a leading provider of AI solutions while catering to the diverse needs of its clientele, from large enterprises to small and medium-sized businesses.

With Reuters Inputs


07:45 IST, April 24th 2024