Microsoft has announced the launch of serverless fine-tuning capabilities for the Phi-3 small language model, enabling developers to easily adjust model performance on the Azure AI platform without managing underlying infrastructure, and it is free for initial use. The Phi-3 model, with 3 billion parameters, is suitable for enterprise developers, offering efficient performance at a lower cost. Although it has fewer parameters compared to OpenAI's GPT-3.5, it performs similarly across various applications. Serverless fine-tuning simplifies operations, reduces barriers, and supports the fine-tuning of small to medium models.