Why Microsoft Is Building Smaller AI Systems That Can Fit in Phones [Video]

Microsoft (MSFT) announced its smallest artificial intelligence (AI) model, the Phi-3 Mini, as the early AI leader expands its small language model (SLM) offerings.

The “tiny but mighty” AI system is one that Microsoft reports rivals OpenAI’s GPT-3.5 and Mistal AI’s Mixtral 8x7B in performance, even though it is “small enough to be deployed on a phone,” according to the company’s technical report.

Microsoft also announced initial results for its Phi-3-Small and Phi-3-Medium, larger SLMs that are more capable.

The company said that the new Phi-3 models are built on a “scaled-up version” of the training dataset it used to train previous versions of its SLMs, including Phi-2 announced in December of 2023.

Large language models (LLMs) like OpenAI’s GPT-4, Amazon-backed (AMZN) Anthropic’s Claude 3, and Meta’s (META) Llama 3“have created exciting new opportunities to be more productive and creative using AI,” but “their size means they can …