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Text · Released Feb 2025

Microsoft Phi-4 Mini 3.8B

Microsoft's compact 3.8B model with a 128K context and native function calling.

Phi-4 Mini 3.8B is an open-weight text model built by Microsoft. It takes a text prompt and replies with generated text. Its context window handles up to 131K input tokens. It runs entirely on your own hardware through Ollama: no API key and no per-use fees.

Modality
Text
Available on
Model ID
ollama:phi4-mini:3.8b
Supported OS
macOSWindowsLinux
Minimum machine configuration
8 GB RAM · 128K ctx · text · CPU/GPU
Download size · ~2.5 GB
Specs
Released
Feb 2025
Pricing
Free, runs on your hardware
Context window
131K in
Real outputs

Samples

Generated with Phi-4 Mini 3.8B via Ollama. The same three prompts run against every text model in the catalog, shown verbatim, so the only thing that changes between two models’ answers is the model.

Short answer104 / 50 words

Explain what an API is to someone who has never written code. Do not use a restaurant or waiter analogy. Plain prose only — no headings, bullet points, or markdown formatting. Maximum 50 words.

An API, or Application Programming Interface, is like a set of rules and tools that allows different software applications to communicate with each other. Think of it as a universal language or intermediary that lets programs send and receive data, enabling them to share information and work together seamlessly. For instance, when you use a weather app on your phone, it requests weather data from a remote server using an API. This server processes the request and sends the data back through the API so your app can display the current weather information. Essentially, an API helps different software applications interact smoothly and efficiently.

Medium answer115 / 150 words

A two-person startup is deciding whether to build their own user authentication or use a hosted provider. Give them a clear recommendation, then the single strongest argument against your own recommendation. Plain prose only — no headings, bullet points, or markdown formatting. Maximum 150 words.

I recommend using a hosted provider for your user authentication. This approach offers several advantages: it is cost-effective, as you save on infrastructure and maintenance costs; it ensures robust security with the provider's expertise; it provides a scalable solution that can grow with your business; and it allows you to focus on core functionalities by relying on the provider's support for updates and security measures. The single strongest argument against this recommendation is the potential for vendor lock-in. Relying on a hosted provider can limit your control over the authentication system, making it difficult to switch services in the future without significant effort and cost. This dependency could hinder your flexibility and long-term strategic decisions.

Long answer231 / 190–220 words

Write a briefing for a non-technical executive explaining why their company's spending on AI is hard to predict, and what they can do about it. Cover at least three distinct causes. Plain prose only — no headings, bullet points, or markdown formatting. Write exactly 205 words.

Predicting your company's spending on AI can be challenging due to various factors. First, AI technology evolves rapidly, meaning the latest advancements might render previous investments less effective or obsolete. This constant progression demands continuous reassessment of spending to keep up with technological advancements. Secondly, AI applications can have diverse impacts across different departments, from marketing to finance. Predicting the return on investment (ROI) in each area is complex, as it depends on various unpredictable factors like market trends, customer behavior, and internal processes. Thirdly, integrating AI into existing systems often involves unexpected challenges and costs. For instance, customizing AI to fit specific needs can be more time-consuming and expensive than anticipated, leading to unforeseen expenses. To manage this unpredictability, your company should adopt a flexible budgeting approach, allowing for adjustments as the AI landscape changes. It's also beneficial to establish a cross-departmental AI task force. This team can provide insights into how AI can benefit specific areas and help identify potential ROI more accurately. Regularly review and assess the performance of AI initiatives to ensure they align with the company's goals and budgets. Finally, invest in training for your staff. A well-informed workforce can better leverage AI tools, leading to more effective and efficient outcomes. By staying adaptable, fostering inter-departmental collaboration, and investing in continuous learning, your company can better navigate the uncertainties of AI spending and maximize its benefits.

About the creator

Microsoft

Microsoft builds the open-weight Phi family of small language models for reasoning, math and code. Microsoft AI also makes MAI-Transcribe, a speech-to-text model that covers 60 languages.

azure.microsoft.com/products/phi ↗
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