Introducing a remarkable family of compact language models (SLMs) that deliver exceptional performance while being cost-effective and low in latency. These models are designed to enhance AI functionalities, decrease resource consumption, and promote budget-friendly generative AI applications across various platforms. They improve response times in real-time interactions, navigate autonomous systems, and support applications that demand low latency, all critical to user experience. Phi-3 can be deployed in cloud environments, edge computing, or directly on devices, offering unparalleled flexibility for deployment and operations. Developed in alignment with Microsoft AI principles—such as accountability, transparency, fairness, reliability, safety, privacy, security, and inclusiveness—these models ensure ethical AI usage. They also excel in offline environments where data privacy is essential or where internet connectivity is sparse. With an expanded context window, Phi-3 generates outputs that are more coherent, accurate, and contextually relevant, making it an ideal choice for various applications. Ultimately, deploying at the edge not only enhances speed but also ensures that users receive timely and effective responses.