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...