The Problem With Cloud AI
OpenAI charges per token. Your data goes to their servers. Rate limits hit at the worst times. API changes break your app. And you need internet to use it.
Ollama: LLMs That Run Locally
Ollama runs large language models on your laptop. No API key. No internet. No per-token costs. Your data never leaves your machine.
One Command Install
curl -fsSL https://ollama.com/install.sh | sh
Run a Model
# Download and run Llama 3.2 (3B parameters)
ollama run llama3.2
# Chat with it
>>> Explain how JWT authentication works
First run downloads the model. After that, it runs offline.
Available Models
ollama run llama3.2 # Meta Llama 3.2 (3B, fast)
ollama run llama3.1:70b # Llama 3.1 70B (powerful)
ollama run codellama # Code-specialized
ollama run mistral # Mistral 7B (efficient)
ollama run gemma2 # Google Gemma 2
ollama run phi3 # Microsoft Phi-3 (small, fast)
ollama run deepseek-r1 # DeepSeek R1 (reasoning)
ollama run qwen2.5-coder # Alibaba coding model
OpenAI-Compatible API
// Drop-in replacement for OpenAI API
const response = await fetch('http://localhost:11434/v1/chat/completions', {
method: 'POST',
headers: { 'Content-Type': 'application/json' },
body: JSON.stringify({
model: 'llama3.2',
messages: [{ role: 'user', content: 'Write a Python function to sort a list' }]
})
})
Any tool that works with OpenAI API works with Ollama. Just change the base URL.
Why Developers Use Ollama
1. Privacy
Processing sensitive code, patient data, or financial documents? Nothing leaves your machine.
2. No Rate Limits
# Process 10,000 documents with no API throttling
for doc in documents:
result = ollama.generate(model='llama3.2', prompt=doc)
3. Cost
OpenAI GPT-4: $30/million input tokens
Ollama: $0. Forever.
4. Offline Development
Airplane. Coffee shop with bad WiFi. Your AI still works.
Hardware Requirements
| Model | RAM Needed | Speed |
|---|---|---|
| Phi-3 (3.8B) | 4GB | Very fast |
| Llama 3.2 (3B) | 4GB | Fast |
| Mistral (7B) | 8GB | Good |
| Llama 3.1 (70B) | 48GB | Slow |
| DeepSeek R1 (671B) | 400GB+ | Very slow |
For most development tasks, a 7B model on 8GB RAM is sufficient.
Integration With Dev Tools
- Continue.dev: AI code assistant using local models
- Open WebUI: ChatGPT-like interface for Ollama
- LangChain/LlamaIndex: Build RAG apps with local models
- n8n: AI workflows with local models
Install
# macOS/Linux
curl -fsSL https://ollama.com/install.sh | sh
# Pull a model
ollama pull llama3.2
# Start chatting
ollama run llama3.2
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