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A local LLM is a language model that runs on hardware you control, such as your own server or computer, instead of being called through a cloud provider’s API.

Tools like Ollama, llama.cpp and vLLM download an open-weight model and serve it over an API on your machine. Your prompts never leave your infrastructure.

The appeal is privacy, no per-token fees and no dependence on a provider’s pricing or policies. The cost moves to hardware: a capable model needs a GPU with enough memory, and the largest models need several.

Local models are a good fit for private data, predictable heavy workloads and cheap everyday tasks, with cloud models kept for the hardest questions.

Local LLM in Aikeedo

Aikeedo connects to Ollama, so you can offer local models next to cloud ones and set their credit price yourself.

Related terms

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Open-weight model

An open-weight model is an AI model whose trained weights are published, so anyone can download it and run it on their own hardware or through any hosting provider.

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Self-hosted software

Self-hosted software runs on a server you control, your own or one you rent, instead of on the vendor’s cloud, so you own the installation and the data.

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LLM (Large Language Model)

An LLM (large language model) is an AI model trained on very large amounts of text to predict the next token, which lets it write, summarise, translate, reason and hold a conversation.

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