Microsoft Opens The Era of 1-Bit LLMs

16 Times Smaller, But Shocking Performance

Ignacio de Gregorio
9 min readMar 12, 2024

Let’s be real, numbers don’t lie.

While markets rally with AI, its effect is clearly not being translated into value, as fewer than 4% of companies are using AI to produce goods and services.

To make matters worse, while some big companies are indeed embracing AI, the unfathomable costs prevent smaller companies from following suit, ironically turning a technology meant to democratize complex tasks and foster competitiveness into a massive inequality machine.

However, things might soon change, as Microsoft has quietly released a 1.58-bit Large Language Model (LLM) that matches the performance of its 16-bit counterpart while being an order of magnitude cheaper and faster.

Microsoft calls it the era of 1-bit LLMs, and you are going to love every second of it.

This insight and others have mostly been previously shared in my weekly newsletter, TheTechOasis.

If you want to be up-to-date with the frenetic world of AI while also feeling inspired to take action or, at the very least, to be well-prepared for the future ahead of us, this is for you.

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Ignacio de Gregorio

I break down frontier AI systems in easy-to-understand language for you. Sign up to my newsletter here: https://thetechoasis.beehiiv.com/subscribe