Last year, Microsoft formed a dedicated AI team to develop small language models (SMLs). While the AI models sport similar capabilities to those found in Microsoft Copilot or OpenAI's ChatGPT, they only require less computing power without compromising on efficiency and effectiveness.
As such, the tech giant won't need to break the bank to advance its efforts in this category. The software giant has shipped several AI models as part of its "Phi-4" range of small models. In May, the company launched a couple of new models, including Phi 4 reasoning, Phi 4 mini reasoning, and Phi 4 reasoning plus.
