GPT-5.1 vs Microsoft Phi-4

OpenAI · US  |  Microsoft · US · Updated June 2026

Quick verdict

Pick GPT-5.1 for adaptive reasoning that scales compute to task difficulty or general-purpose reasoning, coding and tool use. Pick Microsoft Phi-4 for strong reasoning for a small 14b open-weight model or mit-licensed — fully self-hostable at no per-token cost. Choose Microsoft Phi-4 if you need self-hosting or data privacy; GPT-5.1 if you want a managed API.

GPT-5.1 (OpenAI) and Microsoft Phi-4 (Microsoft) are two of the models people most often weigh against each other in 2026. GPT-5.1 is openAI's late-2025 GPT-5.1 at $1.25/$10 — a capable general model since surpassed by the GPT-5.2–5.6 line. Microsoft Phi-4 is microsoft's MIT-licensed 14B open model — strong reasoning for its size and very cheap, but a tiny 16K context and text-only. They diverge most on price, context window and open vs. closed weights — each quantified below from the models' real specs.

Key differences at a glance

Side-by-side specs

SpecGPT-5.1Microsoft Phi-4
ProviderOpenAI (US) Microsoft (US)
ReleasedNovember 13, 2025 January 10, 2025
Context window400K (~600 pages) 16K (~25 pages)
Price (in/out)$1.25/$10 per 1M tokens $0.07/$0.14 per 1M tokens
Open weight?No — API only Yes — self-hostable
Modalitiestext, image, code text, code
SWE-Bench VerifiedNot published Not published
MRCR v2 @ 1MNot published Not published

Who wins what

Adaptive reasoning that scales compute to task difficulty

GPT-5.1

OpenAI's late-2025 GPT-5.1 at $1.25/$10 — a capable general model since surpassed by the GPT-5.2–5.6 line — and it carries the larger 400K context.

General-purpose reasoning, coding and tool use

GPT-5.1

OpenAI's late-2025 GPT-5.1 at $1.25/$10 — a capable general model since surpassed by the GPT-5.2–5.6 line — and it is the newer of the two.

A large ~400K context for long documents and sessions

GPT-5.1

Its 400K window holds about 24× more than Microsoft Phi-4's 16K in a single prompt.

Strong reasoning for a small 14B open-weight model

Microsoft Phi-4

Open weights make this possible at all — GPT-5.1 is API-only, so it cannot leave the vendor's servers.

MIT-licensed — fully self-hostable at no per-token cost

Microsoft Phi-4

At $0.07/$0.14 per 1M tokens it undercuts GPT-5.1 ($1.25/$10 per 1M tokens), and that gap compounds at volume.

Runs on modest or local hardware

Microsoft Phi-4

Microsoft's MIT-licensed 14B open model — strong reasoning for its size and very cheap, but a tiny 16K context and text-only — and it runs cheaper at $0.07/$0.14 per 1M tokens.

Lowest cost at scale

Microsoft Phi-4

At $0.07/$0.14 per 1M tokens, it is the cheaper of the two — the gap dominates the bill on high-volume workloads.

Largest single-prompt input

GPT-5.1

Its 400K window is about 24× larger than Microsoft Phi-4's 16K, fitting roughly 600 pages in one prompt.

Which should you pick?

A cost-sensitive startup shipping high volume

Microsoft Phi-4

At $0.07/$0.14 per 1M tokens it undercuts GPT-5.1, and on millions of tokens that margin decides the monthly bill.

Someone analysing very long documents or codebases

GPT-5.1

Larger 400K window fits more in one prompt.

A team with data-privacy or self-hosting needs

Microsoft Phi-4

Open weights let you run it on your own hardware; GPT-5.1 is API-only.

Anyone whose priority is adaptive reasoning that scales compute to task difficulty

GPT-5.1

It is specifically built for that.

Anyone whose priority is strong reasoning for a small 14b open-weight model

Microsoft Phi-4

That is its strongest area.

GPT-5.1: where it fits

OpenAI's late-2025 GPT-5.1 at $1.25/$10 — a capable general model since surpassed by the GPT-5.2–5.6 line. Released November 13, 2025 by OpenAI, it is built for adaptive reasoning that scales compute to task difficulty, general-purpose reasoning, coding and tool use, a large ~400K context for long documents and sessions, and text and image input.

Its trade-offs are real: superseded by GPT-5.2 through GPT-5.6 — kept for compatibility rather than being current, no reliably published SWE-Bench Verified figure, exact context window unconfirmed (400K vs 410K across trackers), and premium output price at $10/1M for a now-older model. At $1.25 in / $10 out per million tokens, it sits in the mid price band.

Microsoft Phi-4: where it fits

Microsoft's MIT-licensed 14B open model — strong reasoning for its size and very cheap, but a tiny 16K context and text-only. Released January 10, 2025 by Microsoft, it is built for strong reasoning for a small 14B open-weight model, mIT-licensed — fully self-hostable at no per-token cost, runs on modest or local hardware, and very cheap hosted inference at about $0.07/$0.14.

Its trade-offs: a tiny 16K context — by far the smallest window in this comparison, text only — no image, audio or video input, an early-2025 small model, outclassed on hard tasks by 2026 flagships, and no first-party per-token API; hosted prices are third-party. At $0.07 in / $0.14 out per million tokens, it sits in the budget price band.

The bottom line for this matchup

The defining split here is open vs. closed. Microsoft Phi-4 gives you weights you control — self-host it, fine-tune it, keep data in-house, pay only for hardware. GPT-5.1 gives you a managed, always-updated API with no infrastructure to run. Teams with GPUs, privacy requirements, or huge volume often favour the open model; teams that want zero ops and the latest capabilities favour the closed one. Capability is close enough that this operational question, not the benchmark, usually decides it.

Want both GPT-5.1 and Microsoft Phi-4 without two subscriptions? LumiChats gives you these plus 40+ models under one ₹69/day pass (about $1/day) — draft with one, cross-check with the other.

See pricing

Frequently asked questions

Is GPT-5.1 or Microsoft Phi-4 better for coding?

Public SWE-Bench figures are not available for either model, so the honest test is your own repository — run an identical real bug through both. By design, GPT-5.1 leans toward adaptive reasoning that scales compute to task difficulty while Microsoft Phi-4 leans toward strong reasoning for a small 14b open-weight model, and that positioning usually predicts which feels better on your codebase.

Which is cheaper, GPT-5.1 or Microsoft Phi-4?

Microsoft Phi-4 is open-weight, so self-hosting means no per-token fee (you pay for hardware instead), while GPT-5.1 is API-metered at $1.25/$10 per 1M tokens. For most teams without GPUs, the API model is cheaper to start; at very high volume, self-hosting can win.

Which has the bigger context window?

GPT-5.1 — 400K vs 16K, about 24× larger. Useful only if the model actually reasons over the full window, which not all do.

Can I use both GPT-5.1 and Microsoft Phi-4 together?

Yes — a multi-model platform like LumiChats gives you GPT-5.1, Microsoft Phi-4 and 40+ others under one ₹69/day pass (about $1/day), so you can draft with one and cross-check with the other instead of buying two subscriptions.

Which is newer, GPT-5.1 or Microsoft Phi-4?

GPT-5.1 — released November 13, 2025, about 10 months after Microsoft Phi-4.

Related comparisons

Specifications and benchmarks reflect publicly reported figures as of June 2026 and may change as providers release updates. Always verify on your own workload.