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Microsoft is building a team to build smaller, cheaper AI models.

The Information reports the new GenAI team will focus on developing smaller language models (SLMs) that are similar to LLMs like OpenAI’s GPT-4 but use less computing power. Microsoft spent hundreds of millions on chips for one supercomputer to run AI models, so any saving helps.

The GenAI team will be led by Microsoft corporate vice president Misha Bilenko and report to Microsoft CTO Kevin Scott.

Correction January 26th, 2024, 10:08AM ET: The Information has updated its earlier report, which said this will be part of the Azure cloud unit. It will in fact report to Microsoft’s CTO Kevin Scott.