Local AI vs cloud AI (2026): privacy and when to use each
Comparing AI on your own computer (Ollama, LM Studio) with cloud AI (ChatGPT, Claude, Gemini): privacy, hardware requirements, cost and convenience.
Date checked: 16 October 2026. Features and plans change; always check the official site.
“Cloud” AI runs on the company’s servers; “local” AI runs on your own computer. That changes privacy, power and what you need.
| Local AI (Ollama, LM Studio) | Cloud AI (ChatGPT, Claude, Gemini) | |
|---|---|---|
| Where your data goes | Stays on your device | To the provider’s servers |
| Requirements | Apple Silicon Mac with macOS 14+, or PC with AVX2; 16 GB RAM recommended | Browser or app and a connection |
| Offline | Yes, after downloading the model | No |
| Power | Depends on your computer and model | Provider’s large models |
| Cost | Free software; you pay for hardware | Free with limits or subscription |
What to use when
- Sensitive documents (health, clients, ID): local AI, or don’t paste them; see data not to paste.
- Daily use and complex tasks: cloud, for convenience and power.
- Old computer or little RAM: cloud is better.
To start locally, follow Ollama local only or LM Studio.
Advanced level: all the guides for using AI without sending data out are in local and private AI.
Frequently asked questions
Does Ollama send my chats?
According to its documentation, Ollama runs locally and they don’t see your prompts when used that way; cloud models are optional and can be disabled with OLLAMA_NO_CLOUD=1.
Does it work offline?
LM Studio says it can run fully offline once the model is downloaded.
Keep reading
Sources
- Ollama FAQ — Ollama
- LM Studio System Requirements — LM Studio
Change log
- : First published with the Ollama FAQ and LM Studio requirements checked on 16/10/2026.
Educational content, prepared with the help of AI tools, with sources cited. It is not a substitute for professional advice. Tools change fast: if you spot something out of date, write to us at contacto@cognenza.com. How we work.