My Local AI Stack

My Local AI Stack

My Local AI Stack

By Saurabh MLN
Published: March 1, 2026
#AI #LocalAI #Ollama #OpenCode #Development #Privacy

Introduction

A few weeks ago, I set up a local AI coding assistant on my laptop that runs entirely offline. No cloud services, no monthly subscriptions, no data leaving my machine.

And it actually works really well.

In this article, I'll walk you through what I built, the alternative options available, why it matters, and how you can try it too. Whether you're a developer, a student, or just curious about AI - there's something here for you.

The Stack

Here's my current setup:

Component What I Use Other Options
AI Agent OpenWork OpenCode CLI, Claude Code, Cursor, GitHub Copilot
LLM Runtime Ollama LM Studio, llama.cpp, text-generation-webui, GPT4All
AI Model Llama 3.2 (3B) Phi 3.5, Mistral, Qwen, Codellama, Gemma
Platform Linux macOS, Windows, WSL

My Configuration

  • RAM: 8GB (plenty for 3B models!)
  • Storage: ~3GB for the model
  • Time to setup: About 30 minutes

Component Options Explained

AI Agents / Coding Assistants

Tool Type Best For
OpenWork (what I use) Full workspace agent Complete development workflow
OpenCode CLI CLI-based agent Terminal-first developers
Claude Code Autonomous CLI agent Complex multi-step tasks
Cursor IDE-integrated AI IDE users wanting AI
GitHub Copilot IDE plugin Inline code suggestions

LLM Runtimes

Runtime Platform Best For
Ollama (what I use) All platforms Ease of use, great model library
LM Studio macOS/Windows GUI, model management
llama.cpp All platforms Maximum performance, no GPU needed
text-generation-webui All platforms Web UI, extensive features
GPT4All All platforms Privacy-focused, local-only

AI Models

Model Size Strengths RAM Needed
Llama 3.2 3B (what I use) 3B Balanced performance 6-8GB
Llama 3.2 1B 1B Lightweight, fast 4GB
Phi 3.5 3.8B Microsoft's efficient model 6-8GB
Mistral 7B 7B Great reasoning 12-16GB
Codellama 7B 7B Code-specialized 12-16GB
Qwen 2.5 7B Multilingual 12-16GB
Gemma 2B 2B Google's lightweight option 4GB

What Can It Do?

My local AI assistant handles:

Development Tasks

  • Write and edit code files
  • Debug issues and explain errors
  • Refactor and improve code
  • Search through codebases
  • Run terminal commands

General Tasks

  • Answer technical questions
  • Explain programming concepts
  • Help with shell commands
  • Do web research (when online)

It's not as smart as the big cloud AI systems, but for everyday development tasks, it's incredibly useful.

The Architecture: Why This Matters

Here's the cool part - everything runs locally:

┌─────────────────────────────────────────────────┐
│                 My Laptop                        │
│  ┌─────────────┐    ┌─────────────────────┐    │
│  │   OpenWork  │───▶│      Ollama          │    │
│  │  (AI Agent) │    │  (Local LLM Runtime) │    │
│  └─────────────┘    └─────────────────────┘    │
│                              │                   │
│                     ┌──────▼──────┐             │
│                     │ Llama 3.2   │             │
│                     │    (3B)     │             │
│                     └─────────────┘             │
└─────────────────────────────────────────────────┘
         100% Offline Capable! 🔒

No API calls. No data leaving my machine. No monthly bill.

Key Advantages

1. Privacy First

Your code, your files, your data - all stay on your machine. For developers working on proprietary projects, this is huge.

2. No Ongoing Costs

Once set up, it's free. No per-token billing, no subscription fees.

3. Works Offline

Perfect for travel, remote work, or spotty internet.

4. Zero Latency

No network round-trips. Responses are instant.

5. Complete Control

You own the stack. You decide when to update and what models to use.

Security Considerations 🔐

Running local AI has its own security profile:

Aspect Local AI Cloud AI
Data transmission None All data sent to cloud
API keys Not needed Required
Updates Manual Automatic
Network exposure Minimal Standard web

Best Practices:

  • Keep your system software updated
  • Use strong passwords on your machine
  • Be mindful of what files you share externally
  • Use a VPN for additional privacy when researching online

Pricing Breakdown 💰

One of the biggest advantages? The cost.

Item Local AI Stack Claude Pro
Monthly $0 $20-200/month
Year 1 $0 $240-2,400/year
Year 2 $0 $240-2,400/year
Year 3 $0 $240-2,400/year

My total investment: Just my time (~30 min to set up).

Optional upgrades (not required):

  • Extra RAM (16GB): ~$50-100
  • SSD upgrade: Varies

Comparison: Local vs Cloud AI

Feature Local (My Stack) Cloud AI (Claude/GPT)
Privacy 🔒 100% private Data goes to cloud
Cost Free after setup $20-200/month
Works Offline ✅ Yes ❌ Needs internet
Model Size 3B parameters 100B+ parameters
Smartness Good for basics Genius level
Context Window 4K-8K tokens 100K+ tokens
Multimodal ❌ Text only ✅ Images, files
Setup Time 30 minutes 5 minutes

When to Use Local AI

  • Quick code edits and refactoring
  • Learning and experimentation
  • Privacy-sensitive projects
  • Offline work
  • Budget-conscious developers

When to Use Cloud AI

  • Complex problem-solving
  • Large codebase understanding
  • Multimodal tasks (images, files)
  • Latest information retrieval
  • Production-grade code

The Future of Local AI

The local AI space is evolving rapidly. Here's what's coming:

  • Better models - 7B and 8B models will run smoothly on 16GB+
  • Specialized models - Code-specific, embedding, and vision models
  • Fine-tuning - Train models on your private codebase
  • More tools - MCP integrations for enhanced capabilities

If you're on a budget or care about privacy, now is a great time to start.

Getting Started

Ready to try it yourself? Here's how:

Step 1: Install Ollama

curl -fsSL https://ollama.com/install | sh

Step 2: Pull a Model

# My recommendation - good balance of speed and capability
ollama pull llama3.2

# Lighter option
ollama pull llama3.2:1b

# Alternative model
ollama pull phi3.5

Step 3: Install OpenCode

Visit opencode.ai for your platform's installation instructions.

Step 4: Connect Them

Configure OpenCode to use Ollama as the model provider. (See OpenCode documentation for details.)

Conclusion

I've been using this local setup for a few weeks now, and I'm genuinely impressed. It handles most of my daily development tasks - writing helper scripts, debugging code, explaining concepts - without ever needing to touch the cloud.

Is it as smart as Claude? No, not even close.

But it doesn't need to be. For quick tasks, offline work, and privacy-conscious development, it's perfect.

And the best part? It runs on an 8GB laptop - the same machine I use for everyday work.

Note: This article was written with the assistance of my Local AI Stack - OpenWork + OpenCode running Ollama 3.2 (3B model) on my 8GB laptop!

What do you think? Would you try running AI locally? What's your stack? Let me know!

#AI #LocalAI #Ollama #OpenCode #Development #Privacy #Tech #MyLocalAIStack

Author: Saurabh MLN

Date: March 1, 2026

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