Microsoft's tiny model beats Claude 3.7

PLUS: Gemini users can now edit images inside this app

Author

Jason Nguyen
May 01, 2025

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Good morning, AI enthusiasts. Microsoft just released Phi-4-reasoning, a 14B parameter model that matches or beats much larger models on advanced math and logic problems—including Claude 3.7 Sonnet.

With this surprisingly compact yet powerful model running on standard laptops, how might we see the democratization of high-performance AI reshape enterprise adoption and specialized applications?

In Today’s AI Daily:

  • Microsoft's small model beats AI giants

  • Duolingo launches 148 new language courses in AI-powered expansion

  • Bee debuts first-ever wearable AI companion for daily insights

  • New AI tools & prompts

LATEST DEVELOPMENTS

MICROSOFT

Image source: Microsoft

The AI Daily: Microsoft just released Phi-4-reasoning, a new AI model with 14 billion parameters. Even though it’s smaller, it matches or beats much bigger models on hard math and logic problems—and it’s small enough to run on a high-end laptop.

Key notes:

  • Beats larger models like QwQ-32B, R1-70B, and even Claude 3.7 Sonnet on advanced math tests.

  • Trained on 1.4 million reasoning examples from o3-mini.

  • Got a 10% accuracy boost on tough math after just 6,000 extra training examples.

  • Solves problems like mazes and travel routes even though it wasn’t directly trained on them.

  • Also performs well on coding tasks, even with limited training.

Why it matters: This model shows that reasoning may be a flexible skill that works across many kinds of problems. Because Phi-4-reasoning can run on personal computers, it could help more people access powerful AI. It also shows that you don’t need tons of extra training to make a strong model—just the right kind.

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DUOLINGO

Image source: Duolingo

The AI Daily: Duolingo just launched 148 new language courses, doubling its total offerings by using AI to speed up course creation—from years to just months.

Key notes:

  • All 7 top languages (like Spanish, French, Japanese) are now available in all 28 app languages.

  • Before, building one course took years—now they made 148 in under a year.

  • AI helps build and check lessons using a shared content system.

  • The new courses are for beginners and include fun tools like Stories and DuoRadio.

  • Big focus on making Asian languages more available to more learners.

Why it matters: This launch shows how AI is changing education, letting Duolingo grow faster and reach more people than ever. What used to take over 10 years can now happen in months, helping millions start learning languages with high-quality content.

AI BREAKTHROUGHS

BEE

The AI Daily: Bee just launched its first wearable AI device, made to turn your daily life into smart insights. Called the Bee Pioneer Edition, it’s priced at $49.99 and is now available across the U.S. after early deliveries to thousands of users.

Key notes:

  • Turns conversations and daily moments into summaries, reminders, and personal insights.

  • Has two microphones with noise filtering so it hears clearly.

  • Battery lasts up to 7 days (about 160 hours) on one charge.

  • Supports 40 languages, making it easy to use around the world.

  • Can be worn as a wristband or clipped to clothes.

Why it matters: Bee is the first AI device made to stay with you all day, learning from your life as it happens. Unlike phone-based assistants, Bee is always on and gets to know your habits—giving you a more personal AI experience. This could be the start of AI tools that feel more like helpful companions than apps.

FAST TRACKS

🗞️ What matters in AI right now?

Xiaomi released MiMo-7B-RL, a small but powerful AI model that matches OpenAI’s o1-mini and even beats some larger models at math and coding tasks.

Google added image editing to the Gemini App, letting users change photos or AI images in 45+ languages around the world.

DeepSeek launched DeepSeek-Prover-V2, an open-source AI that solves math theorems, with strong results on tough tests like MiniF2F and PutnamBench.

Amazon introduced Nova Premier, its most advanced model yet. It can handle text, images, and videos with a huge 1 million-token limit, and can also train other models.

JetBrains made Mellum open source—a special AI tool for code completion that works with 13+ programming languages, including Java, Python, JavaScript, and Rust.

🔥 Trending AI tools

📩 Meco: AI app for reading newsletters distraction-free.

🎥 HeyReal: AI for making personal video messages.

🤖 Machined: AI tool for writing long-form content fast.

🖼️ Pikzels: AI for editing and enhancing images.

✍️ Trinka: AI for grammar and academic writing fixes.

AI PROMPTS

📚 Create Research Paper Outline

#CONTEXT:
Adopt the role of an academic research expert with in-depth knowledge in [TOPIC]. Your task is to draft a comprehensive research paper outline on [TOPIC]. This outline will serve as a structured guide for developing a full-fledged research paper, beginning with an engaging introduction that outlines the problem or question, its relevance, and the objectives of the research. The outline will meticulously detail the main points and subpoints, integrating pertinent literature and methodologies. The focus will be on ensuring that the proposed research is robust, innovative, and contributes significantly to the existing knowledge in the field.

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Source: The AI Daily

YESTERDAY’S POOL

"What prompts do you want more of?"

Education: 80% ✅

Other: 20%

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Jason - The AI Daily