Small Language Model Market Size Poised To Reach USD 20.71 Billion By 2030

 San Francisco, 30 Oct 2024: The Report Small Language Model Market Size, Share & Trends Analysis Report By Technology, By Deployment (Cloud, On-premises, Hybrid), By Application, By Region, And Segment Forecasts, 2024 - 2030

The small language model market size to reach USD 20.71 billion in 2030 and is projected to grow at a CAGR of 15.6% from 2024 to 2030. As businesses manage the complexities of generative AI and small language model are provide promising solution that strikes a balance between capability and practicality. These models mark an important advancement in AI technology, providing companies with a way to leverage AI’s power in a more controlled, efficient, and customized manner. The continuous improvements and innovations in small language model technology are expected to influence the future of enterprise AI solutions significantly.

Small Language Models (SLMs) stand out due to their strategic use of fewer limitations, normally varying from tens to hundreds of millions, compared to the billions found in larger models. This deliberate design boosts computational efficiency and task-specific performance while preserving strong language conception and generation abilities. Key techniques such as knowledge distillation, model compression, and transfer learning are crucial for optimizing SLMs. These methods help extract the extensive knowledge of larger models into a more focused and domain-specific tool, allowing SLMs to deliver precise and effective applications while maintaining high performance.

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Recent Developments

• In April 2024,Microsoft has unveiled ‘Phi-3-mini,’ a lightweight AI model designed to deliver advanced AI capabilities at a reduced cost. This small language model will be accessible through the Microsoft Azure AI Model Catalog, Hugging Face, Ollama, and NVIDIA NIM. Phi-3-mini is the inaugural model in a series of open small language models that Microsoft has introduced.
• In April 2023, Alibaba Cloud, the digital technology and intelligence division of Alibaba Group, has announced the launch of its latest large language model, Tongyi Qianwen. This new AI model will be incorporated across Alibaba’s various businesses to enhance user experiences in the near future. Customers and developers will also be able to access the model to develop customized AI features in a cost-effectively.

Key Small Language Model Company Insights

Prominent firms have used product launches and developments, followed by expansions, mergers and acquisitions, partnerships, and collaborations contracts, agreements, as their primary business strategy to increase their market share. The companies have used various techniques to enhance market penetration and boost their position in the competitive industry. For instance, in July 2024, Meta AI introduced Llama 3.1. Llama 3.1 405B is the first openly accessible model that competes with leading AI models in terms of advanced capabilities across general knowledge, steerability, mathematics, tool utilization, and multilingual translation.

Key Small Language Model Companies:

The following are the leading companies in the small language model market. These companies collectively hold the largest market share and dictate industry trends.

• Meta AI
• Microsoft
• Salesforce AI
• Alibaba
• Mosaic ML
• Technology Innovation Institute (TII)
• Hugging Face

About Grand View Research

Grand View Research is an India & U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services.

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