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Phi-3 MediumvsPhi-4

Microsoft vs Microsoft — Side-by-side model comparison

Phi-4 leads 3/5 categories

Head-to-Head Comparison

MetricPhi-3 MediumPhi-4
Provider
Microsoft
Microsoft
Arena Rank
#28
Context Window
128K
16K
Input Pricing
Free (open)/1M tokens
Free/1M tokens
Output Pricing
Free (open)/1M tokens
Free/1M tokens
Parameters
14B
14B
Open Source
Yes
Yes
Best For
Balanced performance, reasoning, coding
Small model research, edge deployment, reasoning
Release Date
May 21, 2024
Dec 12, 2024

Phi-3 Medium

Phi-3 Medium, developed by Microsoft, is a mid-size open-source model with 14 billion parameters and a 128K token context window. The model occupies the middle ground in Microsoft's Phi-3 family, offering stronger reasoning and coding capabilities than Phi-3 Mini while remaining deployable on standard enterprise GPU hardware. It benefits from the same high-quality synthetic and curated training data approach that distinguishes the Phi model line. Phi-3 Medium handles coding, analysis, summarization, and structured reasoning tasks competently. Free and open-source, it supports commercial deployment and fine-tuning without licensing costs. The model targets enterprise applications where Phi-3 Mini's capabilities are insufficient but full-scale frontier models are either too expensive or impractical to deploy. It runs on a single GPU, making it accessible for organizations with moderate compute budgets.

Phi-4

Phi-4, developed by Microsoft, is a compact open-source language model that demonstrates remarkable capability relative to its size through innovative training on high-quality synthetic and curated data. The model achieves performance comparable to much larger models on reasoning, coding, and STEM tasks, embodying the principle that data quality matters more than parameter count. As an open-source model, Phi-4 is ideal for on-device deployment, edge computing, and applications requiring local AI processing without cloud connectivity. Its small footprint enables inference on consumer hardware and mobile devices. The model has been influential in proving that careful data curation and training methodology can substitute for massive scale. Phi-4 represents Microsoft's continued investment in efficient AI, advancing the thesis established by the Phi-1 and Phi-2 research papers.

Key Differences: Phi-3 Medium vs Phi-4

1

Phi-3 Medium supports a larger context window (128K), allowing it to process longer documents in a single request.

2

Phi-3 Medium has 14B parameters vs Phi-4's 14B, which affects inference speed and capability.

P

When to use Phi-3 Medium

  • +You need to process long documents (128K context)
  • +Your use case involves balanced performance, reasoning, coding
View full Phi-3 Medium specs →
P

When to use Phi-4

  • +Your use case involves small model research, edge deployment, reasoning
View full Phi-4 specs →

The Verdict

Phi-4 wins our head-to-head comparison with 3 out of 5 category wins. It's the stronger choice for small model research, edge deployment, reasoning, though Phi-3 Medium holds an edge in balanced performance, reasoning, coding.

Last compared: April 2026 · Data sourced from public benchmarks and official pricing pages

Frequently Asked Questions

Which is better, Phi-3 Medium or Phi-4?
In our head-to-head comparison, Phi-4 leads in 3 out of 5 categories (arena rank, context window, input pricing, output pricing, and parameters). Phi-4 excels at small model research, edge deployment, reasoning, while Phi-3 Medium is better suited for balanced performance, reasoning, coding. The best choice depends on your specific requirements, budget, and use case.
How does Phi-3 Medium pricing compare to Phi-4?
Phi-3 Medium charges Free (open) per 1M input tokens and Free (open) per 1M output tokens. Phi-4 charges Free per 1M input tokens and Free per 1M output tokens. For high-volume production workloads, the pricing difference can significantly impact total cost of ownership.
What is the context window difference between Phi-3 Medium and Phi-4?
Phi-3 Medium supports a 128K token context window, while Phi-4 supports 16K tokens. Phi-3 Medium can process longer documents, codebases, and conversations in a single request. Context window size matters most for tasks involving long documents, large codebases, or extended conversations.
Can I use Phi-3 Medium or Phi-4 for free?
Phi-3 Medium is a paid API model starting at Free (open) per 1M input tokens. Phi-4 is available for free (open-source). Open-source models can be self-hosted for free but require your own GPU infrastructure.
Which model has better benchmarks, Phi-3 Medium or Phi-4?
Phi-3 Medium's arena rank is not yet available, while Phi-4 holds rank #28. Note that benchmarks don't capture every use case — we recommend testing both models on your specific tasks.
Is Phi-3 Medium or Phi-4 better for coding?
Phi-3 Medium is specifically optimized for coding tasks. Phi-4's primary strength is small model research, edge deployment, reasoning. For coding specifically, arena rank and code-specific benchmarks are the best indicators of performance.