Microsoft Makes a New Push Into Smaller A.I. System

Seattle-based Karen Weise covers Microsoft. San Francisco-based Cade Metz writes about AI.

In the rush to construct generative A.I. systems, the tech industry has believed more is better, regardless of cost.

Tech businesses are adopting cheaper, less powerful A.I. technology. That may be a good trade-off for many clients.

Microsoft launched three smaller Phi-3 A.I. models on Tuesday. The business stated the smallest of the three worked almost as well as GPT-3.5, the larger system that powered OpenAI's ChatGPT chatbot when it debuted in late 2022.

The smallest Phi-3 model fits on a smartphone and may be used offline. It can run on normal computer chips, not Nvidia's more expensive ones.

Big IT companies can charge less for smaller models since they require less processing. 

They think it allows more consumers to employ A.I. in regions where larger, more complex ones are too pricey. 

Microsoft said the new devices will be “substantially cheaper” than GPT-4, although it didn't specify.

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