This technical report from Microsoft introduces phi-3, a new series of language models (LLMs) designed for various tasks. The core of the report focuses on phi-3-mini, a small but highly capable LLM that rivals models like Mixtral and GPT-3.5 in performance despite being compact enough to run locally on a smartphone. This achievement is attributed to the use of optimized training data that prioritizes knowledge quality and reasoning ability over raw data quantity. The report also presents larger models in the phi-3 series, including models with multilingual and long-context capabilities, as well as a multimodal model called phi-3.5-Vision, capable of processing both text and images. The report highlights the models' strong performance on various benchmarks and emphasizes their safety and alignment with Microsoft's Responsible AI principles.