Local & On-Premise AI

Run large language models locally for privacy, offline use, and cost savings. Compare 4 tools.

Editorial note: Local AI for coding is an emerging category. The tools and models listed here are changing rapidly. Performance of local models remains below cloud-hosted frontier models (Claude, GPT-4) for complex coding tasks, but the gap is narrowing. We update this page as significant new models or tools are released.

Ollama

ollama.com

Run large language models locally on your machine with a single command — no cloud, no API keys, no data leaving your computer.

Best for: Developers who want to run AI coding models locally for privacy, offline access, or to avoid API costs Free and open source. Requires 8GB+ RAM (16GB+ recommended)
Key Features
  • One-command installation and model download — ollama run codellama and you're coding
  • Supports all major open-source models: Code Llama, DeepSeek Coder, StarCoder, Mistral, Qwen
  • Local API server compatible with OpenAI API format — works with tools expecting an OpenAI endpoint
Limitations
  • Requires significant hardware — large models need 16GB+ RAM and benefit from GPU acceleration
  • Local model quality is below frontier cloud models (Claude Sonnet/Opus, GPT-4) for complex tasks
  • No built-in IDE integration — needs to be connected to Cursor, VS Code, or Continue via API
Pricing verified March 2026

LM Studio

lmstudio.ai

Desktop application for downloading, running, and chatting with local LLMs — a user-friendly GUI for local AI.

Best for: Users who want a visual, point-and-click interface for running local AI models without command-line knowledge Free for personal use
Key Features
  • Visual model browser — search, download, and run models from Hugging Face with one click
  • Built-in chat interface and local API server
  • Hardware optimization — automatically configures models for your available RAM and GPU
Limitations
  • Desktop app only — not designed for server or production deployment
  • Same hardware requirements as Ollama — performance depends on your machine
  • Less developer-oriented than Ollama — fewer scripting and automation options
Pricing verified March 2026

Jan

jan.ai

Open-source desktop AI client that runs models locally with a clean ChatGPT-like interface — also connects to cloud APIs.

Best for: Users who want a unified interface for both local models and cloud APIs with full data privacy for local use Free and open source
Key Features
  • Runs models locally or connects to cloud APIs — single interface for both
  • Clean, ChatGPT-like user experience accessible to non-developers
  • Extensions system for customization and integration
Limitations
  • Local model performance limited by hardware
  • Fewer IDE integrations than Ollama
  • Smaller community than Ollama
Pricing verified March 2026

Continue

continue.dev

Open-source AI code assistant for VS Code and JetBrains that connects to any model — local (Ollama) or cloud (OpenAI, Anthropic).

Best for: Developers who want Copilot-like IDE assistance but with the flexibility to use local models or any cloud provider Free and open source
Key Features
  • Works with any model provider — Ollama (local), OpenAI, Anthropic, Google, and more
  • Tab autocomplete, chat, and inline editing — similar features to Copilot and Cursor
  • Full control over which models handle which tasks (e.g., fast local model for autocomplete, cloud model for complex edits)
Limitations
  • Requires more setup than Copilot or Cursor — you configure your own model providers
  • Quality depends entirely on which models you choose — local models produce less capable results
  • Less polished than commercial alternatives for out-of-box experience
Pricing verified March 2026

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