Phi-3 is a series of small language models (SLMs) launched by Microsoft Azure, featuring groundbreaking performance while maintaining low costs and latency. These models are designed for generative AI solutions, being smaller in size and requiring lower computational resources. The Phi-3 model is developed in accordance with Microsoft's AI principles, including accountability, transparency, fairness, reliability, safety, privacy, and inclusiveness, to ensure security. Additionally, Phi-3 supports local deployment, provides accurate and relevant responses, low-latency scenario deployments, cost-constrained task handling, and customizable precision.