Ollama
Runs open-weight models locally from one command, with an OpenAI-compatible API.
open source
Pricing Free and open source (MIT). Your only cost is the hardware it runs on. source ↗
Ollama ↗Head to head
Ollama vs LM Studio
Pick Ollama if you want a local model behind an API — it's open source, command-line first, and other tools talk to it through an OpenAI-compatible endpoint. Pick LM Studio if you want a graphical app to browse, download and chat with models without touching a terminal. Many people run both: LM Studio to explore which model works, Ollama to serve it.
Checked 2026-07-28 · we re-check quarterly · how we compare
LM Studio
A desktop app for discovering, downloading and chatting with local models.
Pricing Free to download and use, including at work as of the date below. Closed source, unlike Ollama. Check current terms before company-wide rollout. source ↗
LM Studio ↗Side by side
| Ollama | LM Studio | |
|---|---|---|
| Interface | Command line, plus a desktop app. | Graphical app built around model discovery and chat. |
| Licence | Open source (MIT) — auditable and freely redistributable. | Free to use, but closed source. |
| Serving other apps | Its API is what most local-AI tooling expects. | Can run a local server too, OpenAI-compatible. |
| Finding models | Pull by name from its registry. | Browse and search with quantisation guidance built in. |
| Learning curve | Trivial if you're comfortable in a terminal. | Lower — nothing to learn before your first chat. |
| Scripting | Straightforward to automate and containerise. | Possible, but the app is the primary surface. |
Pick Ollama if…
- You want other software — a chat UI, an editor, a script — to call the model.
- You care that the tool itself is open source and auditable.
- You're deploying to a server or a container rather than a laptop.
- You're comfortable with a command line and want the least overhead.
Pick LM Studio if…
- You'd rather not open a terminal at all.
- You're still working out which model and quantisation fit your hardware.
- You want built-in guidance on what will actually run in your available RAM.
- You mainly want to chat with a local model, not serve one.
Pick neither if…
- Your machine has little RAM and no discrete GPU — small local models will disappoint compared with a hosted free tier.
- You need frontier-level quality. Open-weight models have closed much of the gap but not all of it.
- You only want privacy for occasional questions; a hosted assistant with training turned off may be enough.
Every comparison here says when the honest answer is "not this one". A page that can only recommend is an advertisement.
Questions people actually ask
Is Ollama free?
Yes — it's open source under the MIT licence. The only cost is the hardware you run it on.
Can I use both?
Yes, and it's a common setup. LM Studio is a good way to try models and judge what your hardware handles; Ollama is a good way to serve the one you settled on.
Do I need a GPU?
No, but it changes the experience. Small quantised models run acceptably on modern CPUs and on Apple Silicon; larger models effectively need a GPU with enough VRAM.
Which is better for a home server?
Ollama. It's designed to be run as a service and containerised, and its API is what most self-hosted AI tools expect to talk to.
Related
Browse the full catalog, or the open-source roundups if you would rather self-host than choose between two subscriptions.