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Microsoft reveals Phi-3.5 — this new small AI model outperforms Gemini and GPT-4o

The Rise of the Smaller Models

Microsoft has published the latest version of its small language model Phi-3.5. This new version is a big upgrade on the previous generation, beating smaller models from leading players like Google, OpenAI, Mistral, and Meta on several important metrics.

Phi-3.5 comes in 3.8 billion, 4.15 billion, and 41.9 billion parameter versions. All three are available to download for free and can be run using a local tool like Ollama. It performed particularly well at reasoning, only being beaten by GPT-4o-mini out of the leading small models. It also did well on math benchmarks, significantly passing Llama and Gemini.