Microsoft on Tuesday has introduced Phi-3-mini, a new lightweight artificial intelligence model aimed at providing affordable AI solutions to a wide range of users. This move highlights Microsoft’s commitment to democratizing AI technology and making it accessible to businesses of all sizes.

Phi-3-mini is the first release in a series of small language models (SLMs) by Microsoft, reflecting the company’s belief in the transformative potential of such models across various industries.

Sébastien Bubeck, Microsoft’s vice president of GenAI research, emphasized the significant cost advantage of Phi-3-mini compared to other models with similar capabilities. “Phi-3 is not slightly cheaper, it’s dramatically cheaper,” Bubeck stated. This cost reduction, up to tenfold, makes Phi-3-mini a compelling choice for companies operating with limited resources.

Designed to handle simpler tasks, Phi-3-mini offers practical solutions tailored for businesses looking to leverage AI technology without breaking the bank. It is now available on Microsoft’s Azure cloud service platform, as well as on machine learning model platforms such as Hugging Face and Ollama. Moreover, Phi-3-mini is optimized for Nvidia’s GPUs and integrated with Nvidia’s software tool Nvidia Inference Microservices (NIM), enhancing its accessibility and performance.

Microsoft’s investment in AI extends beyond product development. The company recently injected $1.5 billion into G42, an AI firm based in the UAE, and has formed strategic partnerships with innovative startups like Mistral AI. These initiatives aim to integrate cutting-edge AI models into Microsoft’s Azure cloud computing platform, further expanding access to advanced AI capabilities for businesses worldwide.