Sounds great. I have a headless server. I have Ollama. I have dreams.
Here’s how reality crushed them — and how I eventually won.
⚡ Update (Feb 20, 2026): The free LLM landscape moved fast since January. Three things changed:
1. Anthropic banned Claude Max tokens in OpenClaw. If you were running on your Max subscription, that’s over. I rebuilt mine for $15/month using Kimi K2.5 + MiniMax M2.5 fallback.
2. New models entered the ring. Qwen 3.5 (Alibaba) — native agentic capabilities, $0.40/M input tokens. DeepSeek V3.2 “Speciale” — 88.7% on LiveCodeBench, MIT license, $0.28/M input. Both OpenRouter-compatible, plug straight into OpenClaw.
3. NVIDIA published an official guide for running OpenClaw locally on RTX GPUs with Ollama. If you have an RTX card, LM Studio + 7B model = truly $0.
My current pick: Kimi K2.5 via OpenRouter for near-Claude quality at pennies. Ollama + Qwen 3.5 locally for $0.
TL;DR: Running OpenClaw with free LLMs is possible but painful — expect hours debugging configs like "api": "openai-completions" vs "openai" and finding models that don't take 7 minutes to say "OK." You'll get working configs for Ollama + Qwen 2.5, minimum specs that actually matter (16GB RAM, 32k context window), and the brutal truth about whether your potato server can handle local AI without melting.

Act 1: The Config Wilderness
The official docs said:
{
"api": "openai"
}
My server said:
Invalid input
Turns out the actual magic words are:
{
"api": "openai-completions"
}
One hyphen. Three hours of my life.
Act 2: The Model That Could(n’t)
First attempt: qwen2.5:7b — a respectable 7 billion parameters.
Time to respond to “Say OK”: 7 minutes.
My mass-produced Chinese rice cooker has better inference speed.
Act 3: The Context Window Betrayal
“Fine,” I said. “I’ll use TinyLlama. It’s tiny. It’s a llama. What could go wrong?”
FailoverError: Model context window too small (2048 tokens). Minimum is 16000.
Clawdbot requires a PhD-level attention span. TinyLlama has the memory of a goldfish.
Act 4: The Goldilocks Model
Finally: qwen2.5:1.5b
- Size: 986 MB (not too big)
- Context: 32k tokens (not too small)
- Speed: Actually responds before my coffee gets cold
- Quality: Hallucinates a bit, but who doesn’t?
The Working Config
{
"models": {
"mode": "merge",
"providers": {
"ollama": {
"baseUrl": "http://127.0.0.1:11434/v1",
"apiKey": "ollama-local",
"api": "openai-completions",
"models": [{
"id": "qwen2.5:1.5b",
"name": "Qwen 2.5 1.5B",
"reasoning": false,
"input": ["text"],
"contextWindow": 32768,
"maxTokens": 8192,
"cost": { "input": 0, "output": 0, "cacheRead": 0, "cacheWrite": 0 }
}]
}
}
},
"agents": {
"defaults": {
"model": { "primary": "ollama/qwen2.5:1.5b" }
}
}
}
Save to: ~/.clawdbot/clawdbot.json AND ~/.clawdbot/agents/main/agent/models.json
Yes, both. Don’t ask.
The Commands That Actually Work
# Install the model
ollama pull qwen2.5:1.5b
# Test directly (bypass gateway complexity)
clawdbot agent --agent main --local --message "Hello"
# Or with gateway
clawdbot gateway &
clawdbot agent --agent main --message "Hello"
# Interactive TUI
clawdbot tui
The Honest Truth
What they promised vs. what you get:
- “Free AI” → Free if your time is worthless
- “Local privacy” → Actually true ✓
- “Fast responses” → Depends on your definition of “fast”
- “Easy setup” →
api: "openai-completions"(not"openai")
Should You Do This?
Yes, if:
- You have a GPU (even a modest one)
- You enjoy debugging configs at 2 AM
- You value privacy over speed
- You find corporate AI pricing offensive
No, if:
- You have a CPU-only potato server
- You expect ChatGPT-level responses
- You value your sanity
The Real Minimum Specs
- RAM: 8 GB minimum, 16 GB recommended
- Model:
qwen2.5:1.5bminimum,qwen2.5:7b+ GPU recommended - Context window: 16k+ required
- Patience: Infinite
Need a VPS That Can Actually Handle This?
If you’re tired of running AI on a potato, a proper VPS makes all the difference. I recommend starting with at least 8GB RAM and some decent CPU cores.
👉 Get a VPS with extra bonus here
Written by someone who mass-retry’d configs until something worked. You’re welcome.
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