Would CUDA be a better path than Gaudi 3 128GB for Phi 3.5 Mini 4B?

Often yes, if your goal is the easiest setup and the widest runtime support. Intel can offer attractive memory capacity, but CUDA still tends to win on tooling maturity, guides, kernels, and model coverage for local AI.

Can Phi 3.5 Mini 4B run on Gaudi 3 128GB?

Q: What should I upgrade first if Phi 3.5 Mini 4B feels slow on Gaudi 3 128GB?

Prefer CUDA if you want the path of least resistance. If your goal is maximum runtime coverage, easier troubleshooting, and better support for new local AI releases, CUDA is usually still the safer upgrade path.

YES — Runs Great

B60Good

Estimated from fit model

Phi 3.5 Mini 4B needs ~22.0 GB VRAM. Gaudi 3 128GB has 128.0 GB. With Q4_K_M quantization, expect ~56 tok/s.

Runtime: llama.cppCapacity: RoomyBandwidth: HighStack: StandardBottleneck: Balanced

Operating mode

Choose the run profile you care about

Interactive favors responsiveness, while light API and scale-out lean harder on serving readiness. The fit stays the same, but the recommendation lens changes.

Current mode

Balanced

Balanced for general local use. Keeps the ranking neutral across personal and serving workflows.

Capabilities:

Select quantization to explore

Q4_K_M (Medium quality) — 22.0 GB, 56.0 tok/s, Runs well

22.0 GB required128.0 GB available

17% VRAM used

Fit status

Runs well

Decode

56.0 tok/s

TTFT

3457 ms

Safe context

128K

Memory

22.0 GB / 128.0 GB

Memory breakdown

Weights2.4 GB

KV Cache5.9 GB

Runtime0.9 GB

Headroom12.8 GB

See how fast it feels

See how fast it feelsPhi 3.5 Mini 4B on Gaudi 3 128GB
1st promptCold start — includes initialization
>What is local AI inference?
Local AI inference means running an AI language model directly on your own hardware — your laptop, desktop, or server — instead of sending requests to a remote cloud API.

When you run inference locally the model weights are loaded into your GPU or unified memory. Each token you generate requires reading those weights from memory, so memory bandwidth is the main bottleneck for decode speed.

Key benefits of running locally:
  - Full privacy: your prompts never leave your machine
  - No per-token cost or rate limits
  - Works offline once the model is downloaded
  - Latency depends only on your hardware
2nd promptWarm — model ready, no init overhead
>How much VRAM do I need?
It depends on the model size and quantization level. A rough rule of thumb:

  Model size     Q4 (4-bit)    Q8 (8-bit)    FP16
  7B params      ~4.3 GB       ~7.5 GB       ~14 GB
  13B params     ~7.9 GB       ~13.9 GB      ~26 GB
  70B params     ~42.7 GB      ~74.9 GB      ~140 GB

Most people use 4-bit quantization (Q4_K_M) which gives 90-95% of full quality at a fraction of the memory. A 24 GB GPU can comfortably run most 7B-13B models.
Estimated: 56.0 tok/s decode · 3.5s TTFT (warm) · 140 tok/s prefill

What limits this setup

The raw memory story may look fine, but the software ecosystem is still a constraint here.

Runtime ecosystem is narrower than CUDA

Intel GPUs can look attractive on memory per dollar, but local AI tooling, kernels, and model coverage are still broader and easier on CUDA today.

Best improvement path

Prefer CUDA if you want the path of least resistance

If your goal is maximum runtime coverage, easier troubleshooting, and better support for new local AI releases, CUDA is usually still the safer upgrade path.

Performance by workload

Workload	Grade	Fit	Decode	TTFT	Context
Chat	B	Runs well	56.0 tok/s	1886 ms	128K
Coding	B	Runs well	56.0 tok/s	3457 ms	128K
Agentic Coding	B	Runs well	56.0 tok/s	5029 ms	128K
Reasoning	B	Runs well	56.0 tok/s	4086 ms	128K
RAG	B	Runs well	56.0 tok/s	6286 ms	128K

Quantization options

How Phi 3.5 Mini 4B (4B params) fits at each quantization level on Gaudi 3 128GB (128.0 GB usable).

Quant	Bits	VRAM	Quality	Fit
Q2_K	2	1.6 GB	Low	C54
Q3_K_S	3	2.0 GB	Low	C54
NVFP4	4

Get started

Copy-paste commands to run Phi 3.5 Mini 4B on your machine.

Run

ollama run phi3.5

Upgrade options

Hardware that runs Phi 3.5 Mini 4B well

Mac Studio M3 Ultra 256GBBudget pick

256 GB Unified (+128)

Adds memory headroom for longer context windows and future model growth.56 tok/s decode

Adds memory headroom for longer context windows and future model growth.

~$6,999 MSRP

Frequently asked questions

Can Gaudi 3 128GB run Phi 3.5 Mini 4B?

Yes, Gaudi 3 128GB can run Phi 3.5 Mini 4B with a B grade (Runs well). Expected decode speed: 56.0 tok/s.

How much VRAM does Phi 3.5 Mini 4B need?

Phi 3.5 Mini 4B (4B parameters) requires approximately 22.0 GB of memory with Q4_K_M quantization.

What is the best quantization for Phi 3.5 Mini 4B?

The recommended quantization for Phi 3.5 Mini 4B is Q4_K_M, which balances quality and memory efficiency.

What speed will Phi 3.5 Mini 4B run at on Gaudi 3 128GB?

On Gaudi 3 128GB, Phi 3.5 Mini 4B achieves approximately 56.0 tokens per second decode speed with a time-to-first-token of 3457ms using Q4_K_M quantization.

Can Gaudi 3 128GB run Phi 3.5 Mini 4B for coding?

For coding workloads, Phi 3.5 Mini 4B on Gaudi 3 128GB receives a B grade with 56.0 tok/s and 128K context.

What context window can Phi 3.5 Mini 4B use on Gaudi 3 128GB?

On Gaudi 3 128GB, Phi 3.5 Mini 4B can safely use up to 128K tokens of context. The model's official context limit is 128K, but available memory constrains the safe maximum.

What should I upgrade first if Phi 3.5 Mini 4B feels slow on Gaudi 3 128GB?

See all results for Gaudi 3 128GB See all hardware for Phi 3.5 Mini 4B

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