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AZURE_OPENAI_ENDPOINT=https://xxx.openai.azure.com/openai/v1
AZURE_OPENAI_API_KEY=your_aoai_api_key
AZURE_SUBSCRIPTION_ID=xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxx
AZURE_OPENAI_API_VERSION=2025-04-01-preview
AZURE_RESOURCE_GROUP=your_resource_group_name
AZURE_RESOURCE_NAME=your_aoai_service_name
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# Supervised Fine-tuning with Azure OpenAI
[![azure CI status](https://github.com/microsoft/agent-lightning/actions/workflows/examples-azure.yml/badge.svg)](https://github.com/microsoft/agent-lightning/actions/workflows/examples-azure.yml)
This example walks through an end-to-end supervised fine-tuning loop on Azure OpenAI. The trainer runs a toy capital-lookup agent, collects traces with rewards, submits fine-tuning jobs using those traces, and deploys every successful checkpoint as a new Azure OpenAI deployment.
**NOTE: The example is tested and compatible with Agent-lightning v0.2.x, but it's not yet maintained on CI due to the difficulty of maintaining a logged-in status in the testing environment.**
## Prerequisites
You need an Azure subscription with an Azure OpenAI resource that supports fine-tuning in your region and a base deployment you can reuse (the defaults assume `gpt-4.1-mini` backed by `gpt-4.1-mini-2025-04-14`). Sign in with the Azure CLI (`az login`) and install the project dependencies, for example via `uv sync` from the repository root.
## Setup
Copy the sample environment file `.env.example`, fill in your Azure values, and source it before running any scripts:
```bash
cp examples/azure_finetune/.env.example examples/azure_finetune/.env
# edit examples/azure_finetune/.env with your keys and identifiers
source examples/azure_finetune/.env
```
Confirm that you have successfully logged into Azure with:
```bash
az account show
```
## Included Files
| File | Description |
| --- | --- |
| `aoai_finetune.py` | Fine-tuning algorithm that batches rollouts, filters traces, launches jobs, deploys checkpoints, and evaluates them. |
| `train_capital_agent.py` | Trainer entry point that loads `capital_samples.csv` and orchestrates three fine-tuning iterations. |
| `capital_agent.py` | Tool-enabled agent that calls `country_capital_lookup`, producing reward `1.0` when the response contains the expected capital. |
| `capital_samples.csv` | Prompt/answer pairs that the trainer splits 80/20 into training and validation sets. |
| `tests/test_deployment.py` | Smoke tests for deployment helper methods when live Azure credentials are configured. |
## Workflow Overview
- **Stage 1 Collect traces.** `Trainer` points runners at your base deployment and gathers rollouts in batches of `finetune_every_n_rollouts`.
- **Stage 2 Filter and package data.** Rewards and telemetries from `capital_agent` are collected by Agent-lightning, which drives filtering via `data_filter_ratio`, and the remaining traces are serialized into Azure OpenAI JSONL format.
- **Stage 3 Fine-tune.** `AzureOpenAIFinetune.finetune` uploads the dataset, waits for the fine-tuning job to finish, and returns the new base model identifier.
- **Stage 4 Deploy and evaluate.** A versioned deployment such as `gpt-4.1-mini-ft_v01` is created, old deployments are pruned when `max_deployments` is exceeded, and validation rollouts confirm the reward.
The process is shown in the following diagram:
<p align="center">
<img src="./assets/aoai_finetune.svg" alt="Azure OpenAI Finetune" style="width:100%"/>
</p>
## Capital Agent
`capital_agent.py` defines a tool-enabled agent that must call `country_capital_lookup` whenever a user asks for a capital city. The deterministic lookup table keeps the task simple, and the reward function checks that the final response contains the expected capital name. Run the script directly to validate credentials or debug tool call behavior:
```bash
python capital_agent.py
```
The agent executes five sample tasks, prints each tool interaction, and records traces via the Agent Lightning tracer.
## Running the Example
Start the full fine-tuning loop from the repository root:
```bash
python train_capital_agent.py
```
`train_capital_agent.py` divides the dataset into training and validation subsets, then completes three fine-tune → deploy → evaluate iterations. Expect short rollout times paired with longer waits (up to 4 hours in our experiments) for Azures fine-tuning queue; deployments usually reach `Succeeded` within 2-3 minutes. The console output looks like this:
```log
10:13:02,624 Starting client-server execution with 2 runner(s) [role=both, main_process=algorithm]
10:13:02,639 Starting LightningStore server on localhost:4747
10:13:02,749 [AOAI FT 1/3] [Stage 1] Starting fine-tuning iteration with 24 tasks...
10:13:02,750 [AOAI FT 1/3] [Stage 2] Using model deployment: gpt-4.1-mini
10:13:03,428 [Worker 1] Started async rollouts (max: unlimited).
10:13:03,429 [Worker 0] Started async rollouts (max: unlimited).
10:13:05,279 [Worker 0 | Rollout ro-efab388d2f0e] Completed in 1.83s. Collected 4 span(s). Final reward: 1.0
10:13:05,454 [Worker 1 | Rollout ro-8ba08859ae85] Completed in 2.01s. Collected 4 span(s). Final reward: 1.0
[... 22 more rollouts omitted ...]
10:13:28,430 [AOAI FT 1/3] [Stage 3] Completed rollouts for 24 tasks.
10:13:28,431 [AOAI FT 1/3] Keeping 28 example(s) for fine-tuning after reward-based filtering.
10:13:28,431 [AOAI FT 1/3] [Stage 4] Prepared 28 training examples after filtering.
10:13:28,431 [AOAI FT 1/3] [Stage 5] Starting fine-tuning for model gpt-4.1-mini-2025-04-14...
10:13:29,854 [AOAI FT 1/3] Uploaded training file to Azure OpenAI (file_id=file-0fd6e72151094a0eb0306de7aae4883b).
10:13:41,216 [AOAI FT 1/3] Fine-tuning job ftjob-0ee45c42591b4f4a8bd4f49ef2301dcd created for base model gpt-4.1-mini-2025-04-14.
10:13:41,217 [AOAI FT 1/3] Waiting for fine-tuning job ftjob-0ee45c42591b4f4a8bd4f49ef2301dcd to complete.
12:29:11,444 [AOAI FT 1/3] Fine-tuning job ftjob-0ee45c42591b4f4a8bd4f49ef2301dcd succeeded with new model id gpt-4.1-mini-2025-04-14.ft-0ee45c42591b4f4a8bd4f49ef2301dcd-v01.
12:29:11,444 [AOAI FT 1/3] [Stage 6] Deploying fine-tuned model...
12:29:14,217 [AOAI FT 1/3] Waiting for deployment gpt-4.1-mini-ft_v01 to become ready.
12:29:15,458 [AOAI FT 1/3] Waiting for deployment to be ready. Current provisioning state of gpt-4.1-mini-ft_v01: Creating
[... 7 repetitive deployment status checks omitted ...]
12:32:53,773 [AOAI FT 1/3] Waiting for deployment to be ready. Current provisioning state of gpt-4.1-mini-ft_v01: Succeeded
12:32:53,773 [AOAI FT 1/3] Deployment gpt-4.1-mini-ft_v01 is ready with version 1.
12:32:53,774 [AOAI FT 1/3] [Stage 7] Evaluating on validation dataset...
[... 8 validation rollouts omitted ...]
12:33:03,979 [AOAI FT 1/3] [Stage 7] Evaluation completed. Average reward: 1.0000
12:33:03,979 [AOAI FT 2/3] [Stage 1] Starting fine-tuning iteration with 24 tasks...
12:33:03,979 [AOAI FT 2/3] [Stage 2] Using model deployment: gpt-4.1-mini-ft_v01
[... 24 rollouts omitted ...]
12:33:34,619 [AOAI FT 2/3] [Stage 3] Completed rollouts for 24 tasks.
12:33:34,620 [AOAI FT 2/3] [Stage 4] Prepared 27 training examples after filtering.
12:33:34,620 [AOAI FT 2/3] [Stage 5] Starting fine-tuning for model gpt-4.1-mini-2025-04-14.ft-0ee45c42591b4f4a8bd4f49ef2301dcd-v01...
12:35:12,694 [AOAI FT 2/3] Waiting for fine-tuning job ftjob-06366e441ee24a0ea242014fea8fbc3a to complete.
13:16:43,810 [AOAI FT 2/3] Fine-tuning job ftjob-06366e441ee24a0ea242014fea8fbc3a succeeded with new model id gpt-4.1-mini-2025-04-14.ft-06366e441ee24a0ea242014fea8fbc3a-v02.
13:16:43,810 [AOAI FT 2/3] [Stage 6] Deploying fine-tuned model...
13:16:46,263 [AOAI FT 2/3] Waiting for deployment gpt-4.1-mini-ft_v02 to become ready.
[... 5 repetitive deployment status checks omitted ...]
13:19:23,856 [AOAI FT 2/3] Waiting for deployment to be ready. Current provisioning state of gpt-4.1-mini-ft_v02: Succeeded
13:19:23,857 [AOAI FT 2/3] [Stage 7] Evaluating on validation dataset...
[... 8 validation rollouts omitted ...]
13:19:39,072 [AOAI FT 2/3] [Stage 7] Evaluation completed. Average reward: 1.0000
13:19:39,072 [AOAI FT 3/3] [Stage 1] Starting fine-tuning iteration with 24 tasks...
13:19:39,073 [AOAI FT 3/3] [Stage 2] Using model deployment: gpt-4.1-mini-ft_v02
[... 24 rollouts omitted ...]
13:20:04,721 [AOAI FT 3/3] [Stage 3] Completed rollouts for 24 tasks.
13:20:04,722 [AOAI FT 3/3] [Stage 4] Prepared 27 training examples after filtering.
13:20:04,722 [AOAI FT 3/3] [Stage 5] Starting fine-tuning for model gpt-4.1-mini-2025-04-14.ft-06366e441ee24a0ea242014fea8fbc3a-v02...
13:20:17,013 [AOAI FT 3/3] Waiting for fine-tuning job ftjob-2651d3183a4b40679d4c3fc886940c0c to complete.
14:02:47,241 [AOAI FT 3/3] Fine-tuning job ftjob-2651d3183a4b40679d4c3fc886940c0c succeeded with new model id gpt-4.1-mini-2025-04-14.ft-2651d3183a4b40679d4c3fc886940c0c-v03.
14:02:47,242 [AOAI FT 3/3] [Stage 6] Deploying fine-tuned model...
14:02:47,242 [AOAI FT 3/3] Maximum number of deployments reached (2). Cleaning up old deployments.
14:02:47,242 [AOAI FT 3/3] Deleting old deployment gpt-4.1-mini-ft_v01.
14:02:48,925 [AOAI FT 3/3] Deployment gpt-4.1-mini-ft_v01 deleted successfully.
14:02:51,168 [AOAI FT 3/3] Waiting for deployment gpt-4.1-mini-ft_v03 to become ready.
[... 7 repetitive deployment status checks omitted ...]
14:06:30,300 [AOAI FT 3/3] Waiting for deployment to be ready. Current provisioning state of gpt-4.1-mini-ft_v03: Succeeded
14:06:30,301 [AOAI FT 3/3] [Stage 7] Evaluating on validation dataset...
[... 8 validation rollouts omitted ...]
14:06:45,506 [AOAI FT 3/3] [Stage 7] Evaluation completed. Average reward: 1.0000
14:06:45,506 Stopping server...
14:06:45,657 Server stopped.
```
## Tips and Cleanup
Tweak `finetune_every_n_rollouts`, `max_deployments`, and `data_filter_ratio` in `train_capital_agent.py` to align with your quotas. While jobs run, visit the Azure OpenAI portal to confirm status. When you are done, delete unused deployments there.
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# Copyright (c) Microsoft. All rights reserved.
"""The Azure OpenAI fine-tuning algorithm implementation."""
import asyncio
import copy
import json
import logging
import os
import random
import subprocess
import tempfile
import time
from typing import Any, Dict, List, Optional, Sequence, Tuple
import requests
from openai import OpenAI
from agentlightning.adapter.messages import OpenAIMessages, TraceToMessages
from agentlightning.algorithm import Algorithm
from agentlightning.algorithm.utils import batch_iter_over_dataset
from agentlightning.reward import find_final_reward
from agentlightning.types import LLM, RolloutMode, TaskInput
logger = logging.getLogger("agentlightning.aoai")
ROLLOUT_IDLE_SLEEP_SECONDS = 5.0
FILE_STATUS_POLL_INTERVAL = 10
FINETUNE_JOB_POLL_INTERVAL = 60
class AzureOpenAIFinetune(Algorithm):
"""Coordinate iterative fine-tuning runs for an Azure OpenAI deployment.
The algorithm batches rollouts, extracts the recorded traces, converts them into JSONL records
that comply with Azure OpenAI fine-tuning, and optionally redeploys the resulting checkpoint so
subsequent rollouts evaluate the newest model revision.
"""
def __init__(
self,
base_deployment_name: str,
finetuned_deployment_name: str,
base_model_name: str,
*,
finetune_every_n_rollouts: int = 32,
azure_openai_endpoint: Optional[str] = None,
azure_openai_api_key: Optional[str] = None,
azure_openai_api_version: Optional[str] = None,
subscription_id: Optional[str] = None,
resource_group: Optional[str] = None,
resource_name: Optional[str] = None,
seed: int = 42,
n_iterations: int = 3,
finetune_epochs: int = 1,
finetune_batch_size: int = 2,
finetune_learning_rate: float = 1.0,
max_deployments: int = 2,
data_filter_ratio: float = 0.5,
) -> None:
"""Create a fine-tuning workflow tied to an Azure OpenAI endpoint.
Args:
base_deployment_name: Deployment used as the base model for the first fine-tuning job.
deployment_name: Deployment that should serve the fine-tuned weights after each round.
Currently, this name is only used as a prefix for the actual deployment created after
each fine-tuning job, because multiple versions cannot be assigned to the same deployment.
base_model_name: On Azure, deployments are instantiated from base models
(e.g., "gpt-4.1-mini" deployment is created from "gpt-4.1-mini-2025-04-14").
This name is used to identify the latter name when launching fine-tuning jobs.
finetune_every_n_rollouts: Number of rollouts grouped together before launching a job.
We don't recommend setting this value too low as fine-tuning jobs have a minimum rows requirement.
azure_openai_endpoint: Azure OpenAI endpoint (e.g. `https://{resource}.openai.azure.com`).
azure_openai_api_key: API key with access to the Azure OpenAI resource.
azure_openai_api_version: API version to use when talking to Azure OpenAI.
subscription_id: Azure subscription that owns the OpenAI resource (used for deployment).
resource_group: Resource group of the target Azure OpenAI resource.
resource_name: Azure OpenAI resource name, usually the Azure OpenAI resource name.
seed: Random seed forwarded to the fine-tuning job for reproducibility.
n_iterations: Number of algorithm iterations (fine-tune → deploy → evaluate).
finetune_epochs: Number of epochs per fine-tuning job (not the number of epochs to go through `train_dataset`).
finetune_batch_size: Batch size to use for the fine-tuning job.
finetune_learning_rate: Learning rate to use for the fine-tuning job.
max_deployments: Maximum number of deployments to keep active; older ones are deleted.
Use this to avoid hitting the capacity limit on Azure service.
data_filter_ratio: Fraction of high-reward examples to keep when preparing JSONL data.
"""
super().__init__()
self.azure_openai_endpoint = azure_openai_endpoint or os.getenv("AZURE_OPENAI_ENDPOINT", "")
if not self.azure_openai_endpoint:
raise ValueError("Azure OpenAI endpoint must be provided via parameter or AZURE_OPENAI_ENDPOINT env var")
self.azure_openai_api_key = azure_openai_api_key or os.getenv("AZURE_OPENAI_API_KEY", "")
if not self.azure_openai_api_key:
raise ValueError("Azure OpenAI API key must be provided via parameter or AZURE_OPENAI_API_KEY env var")
self.azure_openai_api_version = azure_openai_api_version or os.getenv("AZURE_OPENAI_API_VERSION", "")
if not self.azure_openai_api_version:
raise ValueError(
"Azure OpenAI API version must be provided via parameter or AZURE_OPENAI_API_VERSION env var"
)
self.subscription_id = subscription_id or os.getenv("AZURE_SUBSCRIPTION_ID", "")
if not self.subscription_id:
raise ValueError("Azure subscription ID must be provided via parameter or AZURE_SUBSCRIPTION_ID env var")
self.resource_group = resource_group or os.getenv("AZURE_RESOURCE_GROUP", "")
if not self.resource_group:
raise ValueError("Azure resource group must be provided via parameter or AZURE_RESOURCE_GROUP env var")
self.resource_name = resource_name or os.getenv("AZURE_RESOURCE_NAME", "")
if not self.resource_name:
raise ValueError("Azure resource name must be provided via parameter or AZURE_RESOURCE_NAME env var")
self.base_deployment_name = base_deployment_name
self.finetuned_deployment_name = finetuned_deployment_name
self.base_model_name = base_model_name
self.finetune_every_n_rollouts = finetune_every_n_rollouts
self.seed = seed
self.n_iterations = n_iterations
self.finetune_epochs = finetune_epochs
self.finetune_batch_size = finetune_batch_size
self.finetune_learning_rate = finetune_learning_rate
self.max_deployments = max_deployments
self.data_filter_ratio = data_filter_ratio
self.openai_client = OpenAI(
api_key=self.azure_openai_api_key,
base_url=self.azure_openai_endpoint,
)
# Tracks the deployments created. They can be deleted later if needed.
self._created_deployments: List[str] = []
self._log_prefix: str = ""
async def run( # type: ignore
self,
train_dataset: Optional[List[TaskInput]] = None,
val_dataset: Optional[List[TaskInput]] = None,
) -> None:
"""
Run the training loop.
Args:
train_dataset: Optional training dataset
val_dataset: Optional validation dataset
"""
if train_dataset is None or val_dataset is None:
raise ValueError("Both train_dataset and val_dataset must be provided")
resources: LLM = LLM(endpoint=self.azure_openai_endpoint, model=self.base_deployment_name)
store = self.get_store()
# This tracks the model name used in training
# It's different from the deployment name which used for inference
training_model_name: str = self.base_model_name
data_iterator = batch_iter_over_dataset(train_dataset, self.finetune_every_n_rollouts)
for i_iteration in range(self.n_iterations):
self._log_prefix = f"[AOAI FT {i_iteration + 1}/{self.n_iterations}] "
# (1) Fetch the next batch of tasks to process
tasks = next(data_iterator)
self._log_info(f"[Stage 1] Starting fine-tuning iteration with {len(tasks)} tasks...")
# (2) Update the current active LLM deployment address
await store.add_resources({"main_llm": resources})
self._log_info(f"[Stage 2] Using model deployment: {resources.model}")
# (3) Spawn and wait for the rollouts to complete
messages_group, reward_group = await self.batch_rollout_and_collect_data(tasks, "train")
self._log_info(f"[Stage 3] Completed rollouts for {len(tasks)} tasks.")
# (4) Filter the data based on rewards
training_data = await self.prepare_data_for_training(messages_group, reward_group, "train")
self._log_info(f"[Stage 4] Prepared {len(training_data)} training examples after filtering.")
# (5) Perform fine-tuning
self._log_info(f"[Stage 5] Starting fine-tuning for model {training_model_name}...")
training_model_name = self.finetune(training_data, training_model_name, i_iteration)
self._log_info(f"[Stage 5] Fine-tuning completed. Updated training model base name: {training_model_name}")
# (6) Deploy the fine-tuned model
self._log_info(f"[Stage 6] Deploying fine-tuned model...")
resources = self.deploy_finetuned_model(training_model_name, i_iteration + 1)
self._log_info(f"[Stage 6] Deployment completed. Updated resources to: {resources}")
# (7) Evaluate on validation dataset
self._log_info(f"[Stage 7] Evaluating on validation dataset...")
_, val_reward_group = await self.batch_rollout_and_collect_data(val_dataset, "val")
self._log_info(
f"[Stage 7] Evaluation completed. Average reward: {sum(val_reward_group) / len(val_reward_group):.4f}"
)
async def batch_rollout_and_collect_data(
self,
tasks: Sequence[TaskInput],
rollout_mode: RolloutMode = "train",
) -> Tuple[List[OpenAIMessages], List[float]]:
"""Launch rollouts for a batch of tasks and aggregate their traces.
Each task is executed concurrently and the resulting spans are converted into OpenAI-style
chat messages. Rewards from the traces are preserved so downstream filtering can prefer the
highest quality examples.
Args:
tasks: Rollout payloads collected from the dataset.
rollout_mode: Semantic label that differentiates training from validation passes.
Returns:
Tuple containing the flattened list of OpenAI messages and the aligned list of rewards.
"""
if not tasks:
return [], []
results = await asyncio.gather(*(self.rollout_and_collect_data(task, mode=rollout_mode) for task in tasks))
messages_group: List[OpenAIMessages] = []
reward_group: List[float] = []
for messages_list, reward in results:
if not messages_list:
continue
messages_group.extend(messages_list)
# Duplicate the reward for each message set produced by the rollout
reward_group.extend([reward] * len(messages_list))
return messages_group, reward_group
async def rollout_and_collect_data(self, task: TaskInput, mode: RolloutMode) -> Tuple[List[OpenAIMessages], float]:
"""Execute a single rollout, returning OpenAI messages together with the final reward.
The method waits for the rollout to enter a terminal state, retrieves the recorded spans,
converts them into OpenAI chat messages using the configured trace adapter, and extracts the
reward emitted by the runner.
Args:
task: Rollout payload to enqueue in the store.
mode: Execution mode to annotate the rollout (`"train"`, `"val"` or `"test"`).
Returns:
A tuple containing the list of OpenAI messages reconstructed from the trace and the
numeric reward associated with the rollout. Rewards default to `0.0` when not found.
"""
store = self.get_store()
rollout = await store.enqueue_rollout(input=task, mode=mode)
rollout_id = rollout.rollout_id
self._log_debug("Waiting for rollout %s to finish in mode=%s", rollout_id, mode)
while True:
completed = await store.wait_for_rollouts(rollout_ids=[rollout_id], timeout=0.0)
if completed:
finished = completed[0]
if finished.status != "succeeded":
self._log_error(f"Rollout {rollout_id} finished with status {finished.status}. Skipping.")
break
await asyncio.sleep(ROLLOUT_IDLE_SLEEP_SECONDS)
spans = await store.query_spans(rollout_id=rollout_id, attempt_id="latest")
try:
adapter = self.get_adapter()
except ValueError:
adapter = TraceToMessages()
self.set_adapter(adapter)
if not isinstance(adapter, TraceToMessages):
raise RuntimeError(
"The adapter is configured but not a TraceToMessages adapter. "
"AzureOpenAIFinetune requires a TraceToMessages adapter. Please set that in Trainer."
)
messages_list = adapter.adapt(spans)
if not messages_list:
self._log_error(f"Rollout {rollout_id} produced no OpenAI messages for training.")
# NOTE: Patch the messages list for AOAI requirements
# This should ideally be merged into message adapter
for messages in messages_list:
for message in messages["messages"]:
if "content" in message and message["content"] is None:
message.pop("content")
reward = find_final_reward(spans)
if reward is None:
self._log_error(f"Rollout {rollout_id} produced no reward; defaulting to 0.0.")
reward = 0.0
self._log_info("Rollout %s produced %d message set(s) with reward %.3f", rollout_id, len(messages_list), reward)
return messages_list, reward
async def prepare_data_for_training(
self,
messages_group: List[OpenAIMessages],
reward_group: List[float],
split: RolloutMode,
) -> List[Dict[str, Any]]:
"""Combine rollouts and rewards into JSONL training payloads.
Args:
messages_group: Flattened list of OpenAI message dictionaries.
reward_group: Rewards aligned with `messages_group` entries.
split: Dataset split that produced the examples (e.g., `"train"` or `"val"`).
Returns:
JSON-serializable dictionaries ready to be written into a fine-tuning file.
"""
if len(messages_group) != len(reward_group):
raise ValueError("Mismatch between number of message entries and reward entries.")
tagged_examples: List[Dict[str, Any]] = []
for idx, (messages, reward) in enumerate(zip(messages_group, reward_group)):
example: Dict[str, Any] = {
"messages": messages["messages"],
"metadata": {"split": split, "rollout_index": idx},
"reward": reward,
"reward_jitter": random.uniform(0, 1),
}
if messages.get("tools"):
example["tools"] = messages["tools"]
tagged_examples.append(example)
self._log_info(
"Collected %d candidate example(s) for split=%s before filtering (ratio=%.2f).",
len(tagged_examples),
split,
self.data_filter_ratio,
)
filtered_examples = self._filter_training_data(tagged_examples)
self._log_info("Keeping %d example(s) for fine-tuning after reward-based filtering.", len(filtered_examples))
return filtered_examples
def finetune(self, training_data: List[Dict[str, Any]], base_model: str, iteration_idx: int) -> str:
"""Launch a fine-tuning job on Azure OpenAI using the supplied dataset.
Args:
training_data: JSONL-ready records that describe the conversation transcripts.
iteration_idx: Current iteration index.
Returns:
Identifier of the fine-tuned model produced by Azure OpenAI.
"""
if not training_data:
raise ValueError("Training data must not be empty before launching fine-tuning.")
if not self.openai_client:
raise RuntimeError("Azure OpenAI client is not initialized; cannot fine-tune.")
next_iteration = iteration_idx + 1
train_file_path: Optional[str] = None
try:
with tempfile.NamedTemporaryFile(
mode="w", prefix=f"{base_model}_{iteration_idx:02d}_", suffix=".jsonl", delete=False
) as handle:
for record in training_data:
handle.write(json.dumps(record) + "\n")
train_file_path = handle.name
self._log_info(
"Prepared temporary training file %s with %d example(s).", train_file_path, len(training_data)
)
with open(train_file_path, "rb") as file_handle:
training_response = self.openai_client.files.create(file=file_handle, purpose="fine-tune")
train_file_id = training_response.id
self._log_info("Uploaded training file to Azure OpenAI (file_id=%s).", train_file_id)
self._wait_for_file_processed(train_file_id)
job = self.openai_client.fine_tuning.jobs.create(
training_file=train_file_id,
model=base_model,
seed=self.seed,
method={
"type": "supervised",
"supervised": {
"hyperparameters": {
"batch_size": self.finetune_batch_size,
"learning_rate_multiplier": self.finetune_learning_rate,
"n_epochs": self.finetune_epochs,
}
},
},
# TODO: continuously adding suffix will make model names very long after a few iterations
# investigate if we can just specify the fine-tuned model name directly
suffix=f"v{next_iteration:02d}",
# NOTE: https://learn.microsoft.com/en-us/azure/ai-foundry/openai/how-to/fine-tuning
# Other options are "GlobalStandard" and "Standard"
extra_body={"trainingType": "GlobalStandard"},
)
job_id = job.id
self._log_info("Fine-tuning job %s created for base model %s.", job_id, base_model)
fine_tuned_model = self._wait_for_finetuning(job_id)
if not fine_tuned_model:
raise RuntimeError(f"Fine-tuning job {job_id} finished without producing a model id.")
self._log_info("Fine-tuning job %s succeeded with new model id %s.", job_id, fine_tuned_model)
return fine_tuned_model
finally:
if train_file_path and os.path.exists(train_file_path):
try:
os.unlink(train_file_path)
except OSError:
self._log_warning("Failed to remove temporary training file %s.", train_file_path)
def deploy_finetuned_model(self, finetuned_model_id: str, iteration_idx: int) -> LLM:
"""Deploy the fine-tuned checkpoint and return an `LLM` resource descriptor.
Args:
finetuned_model_id: Identifier returned by the fine-tuning job.
iteration_idx: Current iteration index.
Returns:
`LLM` resource pointing to either the Azure deployment or the direct model id.
"""
if not finetuned_model_id:
raise ValueError("finetuned_model_id must be a non-empty string.")
while len(self._created_deployments) >= self.max_deployments:
self._log_warning(
"Maximum number of deployments reached (%d). Cleaning up old deployments.", self.max_deployments
)
oldest_deployment = self._created_deployments.pop(0)
self._log_info("Deleting old deployment %s.", oldest_deployment)
self._delete_deployment(oldest_deployment)
if self.subscription_id and self.resource_group and self.resource_name:
# version should be like this: str(iteration_idx)
# Because of this issue: {"code":"ModelUpgradeNotSupported","message":"Model updates are not supported for finetuned model deployments."}
# We need to concatenate the version to the model name
# and version is always "1"
deployment_name = f"{self.finetuned_deployment_name}_v{iteration_idx:02d}"
self._deploy_model(finetuned_model_id, deployment_name, "1")
self._wait_for_deployment_ready(deployment_name, "1")
self._created_deployments.append(deployment_name)
self._log_info(
"Deployed fine-tuned model %s to deployment %s. We now have %d active deployments.",
finetuned_model_id,
deployment_name,
len(self._created_deployments),
)
else:
raise RuntimeError("Azure deployment parameters missing; using fine-tuned model id directly.")
return LLM(endpoint=self.azure_openai_endpoint, model=deployment_name, api_key=self.azure_openai_api_key)
def cleanup_deployments(self) -> None:
"""Delete all deployments created by this algorithm instance."""
for deployment_name in self._created_deployments:
self._log_info("Cleaning up deployment %s.", deployment_name)
self._delete_deployment(deployment_name)
self._created_deployments = []
def _filter_training_data(self, data: List[Dict[str, Any]]) -> List[Dict[str, Any]]:
"""Select the top-performing examples and strip reward metadata.
Args:
data: Candidate training examples carrying a temporary `reward` key.
Returns:
List of examples suitable for JSONL serialization (without the `reward` field).
"""
if not data:
return []
if self.data_filter_ratio >= 1.0:
selected = data
else:
sorted_data = sorted(data, key=lambda x: (x.get("reward", 0.0), x.get("reward_jitter", 0.0)), reverse=True)
keep_count = max(1, int(len(sorted_data) * self.data_filter_ratio))
selected = sorted_data[:keep_count]
self._log_debug("Filtering kept %d/%d example(s).", len(selected), len(data))
filtered: List[Dict[str, Any]] = []
for entry in selected:
entry_copy = copy.deepcopy(entry)
entry_copy.pop("reward", None)
entry_copy.pop("reward_jitter", None)
entry_copy.pop("metadata", None)
filtered.append(entry_copy)
return filtered
def _wait_for_file_processed(self, file_id: str, interval: int = FILE_STATUS_POLL_INTERVAL) -> None:
"""Poll the uploaded training file until Azure marks it as processed.
Args:
file_id: Identifier returned by `files.create`.
interval: Number of seconds to wait between polling attempts.
"""
self._log_info("Waiting for training file %s to reach the processed state.", file_id)
while True:
file_info = self.openai_client.files.retrieve(file_id)
status = getattr(file_info, "status", None)
self._log_debug("Training file %s status: %s", file_id, status)
if status == "processed":
return
if status == "failed":
raise RuntimeError(f"Azure OpenAI reported a failure while processing file {file_id}.")
time.sleep(interval)
def _wait_for_finetuning(self, job_id: str, interval: int = FINETUNE_JOB_POLL_INTERVAL) -> str:
"""Poll the fine-tuning job until a terminal status is reached.
Args:
job_id: Identifier of the fine-tuning job to monitor.
interval: Number of seconds between polling attempts.
Returns:
The identifier of the fine-tuned model when successful.
Otherwise, raise an exception.
"""
self._log_info("Waiting for fine-tuning job %s to complete.", job_id)
while True:
job = self.openai_client.fine_tuning.jobs.retrieve(job_id)
self._log_debug("Fine-tuning job %s status: %s", job_id, job.status)
if job.status == "succeeded":
if job.fine_tuned_model:
return job.fine_tuned_model
else:
raise RuntimeError(f"Fine-tuning job {job_id} succeeded but no model id was returned: {job}")
if job.status in {"failed", "cancelled"}:
raise RuntimeError(f"Fine-tuning job {job_id} ended with status {job.status}.")
time.sleep(interval)
def _deploy_model(self, model_name: str, deployment_name: str, version: str) -> None:
"""Deploy the fine-tuned model using Azure's control plane REST API.
Args:
model_name: Fine-tuned (training) model identifier returned by Azure OpenAI.
deployment_name: Name of the deployment to update.
version: Version string to stamp on the deployment update.
"""
token = self._get_azure_token()
request_url = (
f"https://management.azure.com/subscriptions/{self.subscription_id}"
f"/resourceGroups/{self.resource_group}"
f"/providers/Microsoft.CognitiveServices/accounts/{self.resource_name}"
f"/deployments/{deployment_name}"
)
headers = {
"Authorization": f"Bearer {token}",
"Content-Type": "application/json",
}
# Follows the setup in https://github.com/azure-ai-foundry/fine-tuning/blob/047fd230a77e327e75d4bc41403ee8e7bff4de9e/Demos/DistillingSarcasm/sarcasm.ipynb
deploy_data = {
"sku": {"name": "DeveloperTier", "capacity": 250},
"properties": {
"model": {
"format": "OpenAI",
"name": model_name,
"version": version,
}
},
}
self._log_info("Deploying model %s (version %s) to deployment %s.", model_name, version, deployment_name)
response = requests.put(
request_url,
params={"api-version": "2025-06-01"},
headers=headers,
data=json.dumps(deploy_data),
timeout=180,
)
if response.status_code < 400:
self._log_info("Deployment %s updated successfully.", deployment_name)
else:
self._log_error("Deployment failed: %s %s", response.status_code, response.text)
def _wait_for_deployment_ready(self, deployment_name: str, version: str, interval: int = 30) -> None:
"""Poll the deployment status until it is marked as ready.
Args:
deployment_name: Name of the deployment to monitor.
interval: Number of seconds between polling attempts.
"""
self._log_info("Waiting for deployment %s to become ready.", deployment_name)
while True:
request_url = (
f"https://management.azure.com/subscriptions/{self.subscription_id}"
f"/resourceGroups/{self.resource_group}"
f"/providers/Microsoft.CognitiveServices/accounts/{self.resource_name}"
f"/deployments/{deployment_name}"
)
token = self._get_azure_token()
headers = {
"Authorization": f"Bearer {token}",
"Content-Type": "application/json",
}
response = requests.get(
request_url,
params={"api-version": "2025-06-01"},
headers=headers,
timeout=60,
)
if response.status_code >= 400:
self._log_error(
"Failed to query deployment status. Retry later: %s, %s", response.status_code, response.text
)
else:
deployment_info = response.json()
properties = deployment_info.get("properties", {})
model_info = properties.get("model", {})
provisioning_state = properties.get("provisioningState")
self._log_info(
"Waiting for deployment to be ready. Current provisioning state of %s: %s",
deployment_name,
provisioning_state,
)
if provisioning_state == "Succeeded":
version_found = model_info.get("version")
if version_found == version:
self._log_info("Deployment %s is ready with version %s.", deployment_name, version)
return
else:
self._log_warning(
"Deployment succeeded, but version mismatch: expected %s, got %s. Try again later.",
version,
version_found,
)
elif provisioning_state == "Cancelled" or provisioning_state == "Failed":
raise RuntimeError(f"Deployment {deployment_name} failed with state {provisioning_state}.")
else:
# Just wait and poll again
self._log_debug(
"Deployment %s not ready yet. Current state: %s", deployment_name, provisioning_state
)
time.sleep(interval)
def _delete_deployment(self, deployment_name: str) -> None:
"""Delete a specific deployment in Azure OpenAI.
Args:
deployment_name: Name of the deployment to delete.
"""
token = self._get_azure_token()
request_url = (
f"https://management.azure.com/subscriptions/{self.subscription_id}"
f"/resourceGroups/{self.resource_group}"
f"/providers/Microsoft.CognitiveServices/accounts/{self.resource_name}"
f"/deployments/{deployment_name}"
)
headers = {
"Authorization": f"Bearer {token}",
"Content-Type": "application/json",
}
self._log_info("Deleting deployment %s...", deployment_name)
response = requests.delete(
request_url,
params={"api-version": "2025-06-01"},
headers=headers,
timeout=60,
)
if response.status_code in (200, 202, 204):
self._log_info("Deployment %s deleted successfully.", deployment_name)
else:
self._log_error(
"Failed to delete deployment %s: %s %s",
deployment_name,
response.status_code,
response.text,
)
def _get_azure_token(self) -> str:
"""Request an Azure management token via the Azure CLI.
Returns:
Bearer token that authorizes calls to the Azure management plane.
"""
cmd = [
"az",
"account",
"get-access-token",
"--resource",
"https://management.azure.com",
"--query",
"accessToken",
"-o",
"tsv",
]
try:
token = subprocess.check_output(cmd, text=True).strip()
except subprocess.CalledProcessError as exc:
raise ValueError("Azure CLI command failed. Could not fetch token from Azure CLI.") from exc
if token:
return token
else:
raise ValueError("Could not fetch token from Azure CLI.")
# Logging helpers
def _log_info(self, message: str, *args: Any, **kwargs: Any) -> None:
logger.info(f"{self._log_prefix}{message}", *args, **kwargs)
def _log_debug(self, message: str, *args: Any, **kwargs: Any) -> None:
logger.debug(f"{self._log_prefix}{message}", *args, **kwargs)
def _log_warning(self, message: str, *args: Any, **kwargs: Any) -> None:
logger.warning(f"{self._log_prefix}{message}", *args, **kwargs)
def _log_error(self, message: str, *args: Any, **kwargs: Any) -> None:
logger.error(f"{self._log_prefix}{message}", *args, **kwargs)
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# Copyright (c) Microsoft. All rights reserved.
"""An example of agent using Azure OpenAI with tool calls to look up capital cities.
Running this script directly will run a few sample tasks using the `capital_agent`,
which will test the healthiness of your Azure OpenAI setup.
Remember to have the following environment variables set:
- `AZURE_OPENAI_API_KEY`: Your Azure OpenAI API key.
- `AZURE_OPENAI_ENDPOINT`: Your Azure OpenAI endpoint URL.
"""
import asyncio
import json
import os
from typing import List, TypedDict, cast
import openai
import pandas as pd
from openai.types.chat import (
ChatCompletionMessageFunctionToolCallParam,
ChatCompletionMessageParam,
ChatCompletionToolMessageParam,
ChatCompletionToolParam,
)
from rich.console import Console
from agentlightning import LLM, AgentOpsTracer, InMemoryLightningStore, LitAgentRunner, rollout
CAPITALS = {
"japan": "Tokyo",
"france": "Paris",
"canada": "Ottawa",
"australia": "Canberra",
"brazil": "Brasília",
"egypt": "Cairo",
"kenya": "Nairobi",
"spain": "Madrid",
"italy": "Rome",
"germany": "Berlin",
"south korea": "Seoul",
"india": "New Delhi",
}
console = Console()
def country_capital_lookup(country: str) -> str:
return CAPITALS.get(country.strip().lower(), "Unknown")
class CapitalTask(TypedDict):
input: str
output: str
TOOLS: List[ChatCompletionToolParam] = [
{
"type": "function",
"function": {
"name": "country_capital_lookup",
"description": "Get the capital city of a given country.",
"parameters": {"type": "object", "properties": {"country": {"type": "string"}}, "required": ["country"]},
},
}
]
SYSTEM = (
"You are a concise assistant. "
"If the user asks for a country's capital, ALWAYS call the tool 'country_capital_lookup'. "
"Otherwise, answer briefly."
)
@rollout
def capital_agent(task: CapitalTask, llm: LLM) -> float:
"""Run one evaluation task with capital agent.
Returns 1.0 if output contains expected substring, else 0.0.
"""
console.print("[bold blue]======== Runner Start ========[/bold blue]")
console.print("[bold blue]Runner[/bold blue] [Step 1] Running task with input:", task)
prompt = task["input"]
expected = task["output"]
openai_client = openai.OpenAI(base_url=llm.endpoint, api_key=os.getenv("AZURE_OPENAI_API_KEY", ""))
messages: List[ChatCompletionMessageParam] = [
{"role": "system", "content": SYSTEM},
{"role": "user", "content": prompt},
]
# --- Call #1 ---
first = openai_client.chat.completions.create(
model=llm.model,
messages=messages,
tools=TOOLS,
tool_choice="auto",
temperature=1.0,
)
msg = first.choices[0].message
console.print("[bold blue]Runner[/bold blue] [Step 2] First call response:", msg)
if msg.tool_calls:
assistant_tool_calls: List[ChatCompletionMessageFunctionToolCallParam] = []
tool_results: List[ChatCompletionToolMessageParam] = []
for tc in msg.tool_calls:
if tc.type == "function" and tc.function.name == "country_capital_lookup":
args = json.loads(tc.function.arguments or "{}")
result = country_capital_lookup(args.get("country", ""))
assistant_tool_calls.append(
{
"id": tc.id,
"type": "function",
"function": {
"name": tc.function.name,
"arguments": tc.function.arguments,
},
}
)
tool_results.append(
{
"role": "tool",
"tool_call_id": tc.id,
"content": result,
}
)
messages.append(
{
"role": "assistant",
"content": msg.content or "",
"tool_calls": assistant_tool_calls,
}
)
messages.extend(tool_results)
console.print("[bold blue]Runner[/bold blue] [Step 3] Messages after tool call:", messages)
# --- Call #2 ---
second = openai_client.chat.completions.create(
model=llm.model,
messages=messages,
temperature=1.0,
)
final_text = second.choices[0].message.content or ""
console.print("[bold blue]Runner[/bold blue] [Step 4] Second call response:", final_text)
else:
console.print("[bold blue]Runner[/bold blue] [Step 3] No tool calls made.")
final_text = msg.content or ""
final_text = final_text.strip()
reward = 1.0 if expected.lower() in final_text.lower() else 0.0
console.print(f"[bold blue]Runner[/bold blue] [Step Final] Final output: {final_text} | Reward: {reward}")
return reward
async def main():
# We don't put API key in LLM object for security reasons.
llm = LLM(
endpoint=os.getenv("AZURE_OPENAI_ENDPOINT", ""),
model="gpt-4.1-mini",
)
data = pd.read_csv("capital_samples.csv") # type: ignore
tracer = AgentOpsTracer()
runner = LitAgentRunner[CapitalTask](tracer=tracer)
store = InMemoryLightningStore()
with runner.run_context(agent=capital_agent, store=store):
for index in range(5):
sample = cast(CapitalTask, data.iloc[index].to_dict()) # type: ignore
await runner.step(sample, resources={"main_llm": llm})
if __name__ == "__main__":
asyncio.run(main())
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input,output
Japan's capital please,Tokyo
capital city of JAPAN,Tokyo
What is the capital of Japan 🇯🇵?,Tokyo
The capital of France is...?,Paris
Name France's capital city.,Paris
france capital pls,Paris
Capital for Canada?,Ottawa
canada — what's the capital?,Ottawa
Tell me Canada's capital city,Ottawa
Australia capital?,Canberra
capital of australia pls,Canberra
Which is Australias capital city?,Canberra
capital of brazil (quick),Brasília
What's Brazil's capital city?,Brasília
brazil: name the capital,Brasília
egypt capital now?,Cairo
Capital city of Egypt please.,Cairo
Which city is Egypts capital?,Cairo
kenyas capital city is what?,Nairobi
Give me Kenya's capital.,Nairobi
capital of KENYA?,Nairobi
"For Spain, name the capital.",Madrid
spain capital please!,Madrid
Which is Spains capital city?,Madrid
italy — capital city?,Rome
Remind me Italys capital.,Rome
capital of ITALY??,Rome
What's Germanys capital?,Berlin
Name the capital city of Germany.,Berlin
germany: capital city pls,Berlin
"For South Korea, give capital.",Seoul
south korea capital please,Seoul
Capital city of South Korea?,Seoul
What's the capital of India?,New Delhi
india capital now?,New Delhi
Name Indias capital city.,New Delhi
Just say hello.,Hello
Greet me in one sentence.,Hello
Say “hello” once.,Hello
1 input output
2 Japan's capital please Tokyo
3 capital city of JAPAN Tokyo
4 What is the capital of Japan 🇯🇵? Tokyo
5 The capital of France is...? Paris
6 Name France's capital city. Paris
7 france capital pls Paris
8 Capital for Canada? Ottawa
9 canada — what's the capital? Ottawa
10 Tell me Canada's capital city Ottawa
11 Australia capital? Canberra
12 capital of australia pls Canberra
13 Which is Australia’s capital city? Canberra
14 capital of brazil (quick) Brasília
15 What's Brazil's capital city? Brasília
16 brazil: name the capital Brasília
17 egypt capital now? Cairo
18 Capital city of Egypt please. Cairo
19 Which city is Egypt’s capital? Cairo
20 kenya’s capital city is what? Nairobi
21 Give me Kenya's capital. Nairobi
22 capital of KENYA? Nairobi
23 For Spain, name the capital. Madrid
24 spain capital please! Madrid
25 Which is Spain’s capital city? Madrid
26 italy — capital city? Rome
27 Remind me Italy’s capital. Rome
28 capital of ITALY?? Rome
29 What's Germany’s capital? Berlin
30 Name the capital city of Germany. Berlin
31 germany: capital city pls Berlin
32 For South Korea, give capital. Seoul
33 south korea capital please Seoul
34 Capital city of South Korea? Seoul
35 What's the capital of India? New Delhi
36 india capital now? New Delhi
37 Name India’s capital city. New Delhi
38 Just say hello. Hello
39 Greet me in one sentence. Hello
40 Say “hello” once. Hello
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# Copyright (c) Microsoft. All rights reserved.
from aoai_finetune import AzureOpenAIFinetune
from agentlightning import setup_logging
finetune_algo = AzureOpenAIFinetune(
base_deployment_name="gpt-4.1-mini",
finetuned_deployment_name="gpt-4.1-mini-ft",
base_model_name="gpt-4.1-mini-2025-04-14",
finetune_every_n_rollouts=24,
data_filter_ratio=0.6,
)
setup_logging()
def test_deployment():
finetune_algo._deploy_model( # pyright: ignore[reportPrivateUsage]
model_name="gpt-4.1-mini-2025-04-14.ft-071a9d9c59ec4d088d1a3e56707d7361-aoai_ft_1",
deployment_name="gpt-4.1-mini-ft",
version="1",
)
def test_wait_for_deployment_ready():
finetune_algo._wait_for_deployment_ready("gpt-4.1-mini-ft", "1") # pyright: ignore[reportPrivateUsage]
def test_delete_deployment():
finetune_algo._delete_deployment("gpt-4.1-mini-ft_v01") # pyright: ignore[reportPrivateUsage]
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# Copyright (c) Microsoft. All rights reserved.
import argparse
import pandas as pd
from aoai_finetune import AzureOpenAIFinetune
from capital_agent import capital_agent
from rich.console import Console
from agentlightning import TraceToMessages, Trainer, setup_logging
console = Console()
def parse_args() -> argparse.Namespace:
parser = argparse.ArgumentParser(description="Train Capital Agent with Azure OpenAI Finetuning")
parser.add_argument("--n-iterations", type=int, default=3, help="Number of finetuning iterations")
parser.add_argument("--cleanup", action="store_true", help="Cleanup finetuned deployments after training")
return parser.parse_args()
def main():
setup_logging()
args = parse_args()
finetune_algo = AzureOpenAIFinetune(
base_deployment_name="gpt-4.1-mini",
finetuned_deployment_name="gpt-4.1-mini-ft",
base_model_name="gpt-4.1-mini-2025-04-14",
finetune_every_n_rollouts=24,
data_filter_ratio=0.6,
n_iterations=args.n_iterations,
)
trainer = Trainer(n_runners=2, algorithm=finetune_algo, adapter=TraceToMessages())
dataset = pd.read_csv("capital_samples.csv") # type: ignore
train_dataset = dataset.sample(frac=0.8, random_state=42) # 80% for training # type: ignore
val_dataset = dataset.drop(train_dataset.index) # Remaining 20% for validation # type: ignore
console.print(f"Training on {len(train_dataset)} samples, validating on {len(val_dataset)} samples.") # type: ignore
try:
trainer.fit(
capital_agent,
train_dataset=train_dataset.to_dict(orient="records"), # type: ignore
val_dataset=val_dataset.to_dict(orient="records"), # type: ignore
)
finally:
if args.cleanup:
finetune_algo.cleanup_deployments()
if __name__ == "__main__":
main()