Blog Post

Azure AI Foundry Blog
2 MIN READ

Announcing new Phi pricing, Empowering Your Business with Small Language Models

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martincai
Icon for Microsoft rankMicrosoft
Mar 20, 2025

Last month, Microsoft announced two new models to the Phi family. With that announcement comes new pricing for designed to provide our customers with even more value and flexibility.

Why small language models matter

Small language models are revolutionizing the way businesses operate by offering powerful capabilities without the need for extensive computational resources. These models are not only cost-effective but also highly efficient, making them ideal for a wide range of applications, from customer service to data analysis.

Phi pricing

Language and vison models

ModelsContext lengthInput (per 1,000 tokens)Output (per 1,000 tokens)

Phi-3-mini

4K

$0.00013

$0.00052  

Phi-3-mini

128K

$0.00013

$0.00052

Phi-3.5-mini

128K

$0.00013 

$0.00052

Phi-3-small

8K

$0.00015

$0.0006

Phi-3-small

128K

$0.00015

$0.0006  

Phi-3-medium

4K

$0.00017

$0.00068  

Phi-3-medium

128K

$0.00017

$0.00068  

Phi-3.5-MoE

128K

$0.00016 

$0.00064  

Phi-4

128K

$0.000125

$0.0005

Phi-4-mini

128K

$0.000075

$0.0003

Phi-4-multimodal, text and image

128K

$0.00008

$0.00032

Phi-4-multimodal, audio

128K

$0.004

$0.00032

 

Finetuning

ModelsContext length Training per 1,000 tokensHosting per hour Input Usage per 1,000 tokensOutput Usage per 1,000 tokens

Phi-3-mini

4K

$0.003

$0.80

$0.00013

$0.00052

Phi-3-mini

128K

$0.003

$0.80

$0.00013

$0.00052

Phi-3.5-mini

128K

$0.003

$0.80

$0.00013

$0.00052

Phi-3-medium

4K

$0.003

$0.80

$0.00017

$0.00068

Phi-3-medium

128K

$0.003

$0.80

$0.00017

$0.00068

Phi-3.5-MoE

128K

$0.003

$0.80

$0.00016

$0.00064

Phi-4

128K

$0.003

$0.80

$0.000125

$0.0005

Phi-4-mini

128K

$0.003

$0.80

$0.000075

$0.0003

Key benefits of new Phi pricing
  1. Affordability: Our new pricing structure ensures that businesses of all sizes can access the benefits of small language models without breaking the bank.
  2. Scalability: Whether you're a small startup or a large enterprise, our pricing is designed to scale with your needs, providing you with the flexibility to grow.
  3. Efficiency: Small language models are optimized for performance, allowing you to achieve faster results and improve overall productivity.
Learn more

We believe that small language models are part of the future of business intelligence. We invite you to explore the possibilities and see how our solutions can transform your business.

 
Updated Mar 20, 2025
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