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Choose your language model for Agentic Retrieval in Foundry Local

Agentic Retrieval requires a language model for inference. This article helps you choose the right model for your use case and understand the available deployment options.

Important

Agentic Retrieval in Foundry Local is currently in PREVIEW. See the Supplemental Terms of Use for Microsoft Azure Previews for legal terms that apply to Azure features that are in beta, preview, or otherwise not yet released into general availability.

Select a language model

Agentic Retrieval doesn't include any language models. You must provide your own LLM endpoint that exposes an OpenAI-compatible chat completions API. Both the agentic layer (for agent runs) and the knowledge layer (for RAG inference) use this endpoint.

Work with your application development team to choose the right model for your use case.

To choose the right model for your use case, refer to these resources from Microsoft:

Available models with Foundry Local

If you use Foundry Local as your model endpoint, the following models are available for deployment.

The recommended model for most use cases is gpt-oss-20b. For step-by-step deployment instructions, see Create your language model endpoint.

CPU-optimized models (no GPU required):

Model Parameters Notes
phi-3-mini-4k-instruct-generic-cpu:2 3.8B Microsoft Phi-3 Mini
phi-3.5-mini-instruct-generic-cpu:1 3.8B Microsoft Phi-3.5 Mini
qwen2.5-0.5b-instruct-generic-cpu:3 0.5B Small, fast
qwen2.5-1.5b-instruct-generic-cpu:3 1.5B Larger Qwen
llama3.2:1b 1B Meta Llama 3.2
llama3.2:3b 3B Meta Llama 3.2

GPU-optimized models (CUDA required):

Model Parameters
gpt-oss-20b 20B
qwen2.5-1.5b-instruct-cuda-gpu:3 1.5B
llama3.1:8b 8B
Use case Recommended model Runtime
Knowledge-only (layerSelection=knowledge) gpt-oss-20b vllm or onnx-genai
Agentic or Combined (layerSelection=agentic or combined) gpt-oss-20b vllm (required for tool calling)
RAG and entity extraction gpt-oss-20b vllm

Set up your endpoint

After you choose a model, you need an OpenAI-compatible chat completions endpoint. Foundry Local on Azure Local is the recommended option because it runs on the same Arc-connected cluster as the extension. You can also use Microsoft Foundry for cloud-hosted models.

For supported methods and step-by-step setup instructions, see Create your language model endpoint.

Next steps