Using AI tools

Local model

In short

A local model is an AI model that runs on your own computer instead of a company's servers. Your prompts stay on your machine and it can work offline, but it needs a reasonably powerful computer.

Also called
Local LLM, Self-hosted model, Offline AI model
Topic
Using AI tools
Level
Beginner
First described
There is no single inventor. The open-source llama.cpp project, started on GitHub on 10 March 2023, became a widely used engine for running language models on personal computers, with more than 130,000 GitHub stars3.

Most chatbots send what you type to a data centre. A local model is downloaded once and then runs on your own hardware. LM Studio, for example, says it can work entirely offline once you have the model files, including chatting with models and with documents1.

Privacy is the main draw. Ollama's documentation says that when you run models locally, the company does not see your prompts or data2. Ollama also offers cloud-hosted models, so not everything it runs is local2.

You can only run a model locally if its weights, the trained numbers that make up the model, are available to download. Open-weight models qualify; closed models do not. A widely used engine is llama.cpp, whose stated goal is running language models with minimal setup on a wide range of hardware3.

To squeeze a model into a laptop's memory, these tools use quantisation, storing each number with fewer bits. llama.cpp supports from 1.5-bit to 8-bit formats to cut memory use3. The cost is some accuracy: Apple, which compresses its own phone model, says the result "often shows a moderate level of quality loss"4.

Speed depends on your computer's chip and memory, so the same model can feel quick on one machine and sluggish on another.

Example

A GP practice manager wants to summarise staff meeting notes without uploading them anywhere. She installs LM Studio, downloads an open model, turns off Wi-Fi and runs it; LM Studio says chatting with documents works without the internet1.

Why it matters

It lets you use AI on private material without handing it to a tech company, and it keeps working without an internet connection.

Questions people ask

Is a local model free?

There is usually no per-message fee, because nothing is sent to a paid service. You pay instead in hardware and electricity. Some tools, such as Ollama, also sell cloud models alongside local ones2.

Can a local model work without the internet?

Yes, once the model is downloaded. LM Studio says chatting, chatting with documents and running a local server all work offline1.

Is a local model as good as ChatGPT?

It depends on the model and your computer. Models small enough for a laptop are often compressed, and compression can cost quality; Apple reports a moderate quality loss in its own compressed model before correction4. The best closed models cannot be run locally at all.

Related terms

Tools that use it

Sources

  1. LM Studio documentation, Offline operation
  2. Ollama documentation, FAQ
  3. ggml-org/llama.cpp, GitHub repository and README
  4. Gunter et al. (2024), Apple Intelligence Foundation Language Models, arXiv:2407.21075

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