Clarification requested: using locally generated Phi-3 outputs as training data

#21
by RyoSpiralArchitect - opened

Hello Microsoft Phi team,

I am evaluating microsoft/Phi-3-medium-128k-instruct at revision a088b37c71d441ab6d862bb3fcfe6165b3014702 and would appreciate a model-specific licensing clarification.

The proposed workflow is:

  • download the MIT-licensed model weights from this repository and run inference entirely on local hardware;
  • do not use Azure, Microsoft Foundry, or another Microsoft-hosted AI service;
  • use prompts and source material for which we are responsible;
  • retain some locally generated text as synthetic examples in the training corpus of a separately developed model called Aether; and
  • do not attempt to recover Phi weights, hidden system instructions, or other proprietary internals.

Could a Microsoft model maintainer please clarify:

  1. Does Microsoft regard this local use of Phi-3-generated text as permitted under the license and terms distributed with this open model?
  2. Do the output-training restrictions in Microsoft's AI-service terms apply when the downloaded open weights are run fully locally without using a Microsoft service?
  3. If the repository's MIT license does not affirmatively cover generated output, is there another Microsoft term or official source that governs this use, or would separate permission be required?

A yes/no/conditional answer with a link to the applicable Microsoft terms would be especially helpful. I understand that Microsoft cannot determine third-party rights in particular outputs or provide advice about every jurisdiction; this question is limited to Microsoft's intended permission and contractual scope for the locally run open model.

Thank you.

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