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Microsoft unveils serverless fine-tuning for its Phi-3 small language model


While it's a clear win for developers looking to stay in the Microsoft ecosystem, it's also a notable competitor to Microsoft's own ally.

While significantly smaller than most other leading language models ( Meta’s Llama 3.1 for instance, comes in a 405 billion parameter flavor — parameters being the “settings” that guide the neural network’s processing and responses), Phi-3 performed on the level of OpenAI’s GPT-3.5 model, according to comments provided at that time to VentureBeat by Sébastien Bubeck, Vice President of Microsoft generative AI. But at that point, there was no serverless option to fine-tune it: if you wanted to do it, you had to set up your own Microsoft Azure server or download the model and run it on your own local machine, which may not have enough space. Coming also on the heels of Meta’s release of the open source Llama 3.1 family and Mistral’s new Mistral Large 2 model, both of which can also be fine tuned for different uses, it’s clear the race to offer compelling AI options for enterprise development is in full swing — and AI providers are courting developers with both small and big models.

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