Microsoft’s 2.7 billion-parameter model Phi-2 showcases outstanding reasoning and language understanding capabilities, setting a new standard for performance among base language models with less than 13 billion parameters.

Phi-2 builds upon the success of its predecessors, Phi-1 and Phi-1.5, by matching or surpassing models up to 25 times larger—thanks to innovations in model scaling and training data curation.

The compact size of Phi-2 makes it an ideal playground...