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AI comparison

Local model vs API

A local model keeps data and versions under your control at the cost of hardware and operations; a hosted API gives larger models with no servers, charged per token.

Local model and Hosted API side by side
AspectLocal modelHosted API
Where data goesStays on your machinesSent to the provider
Cost shapeHardware and power, whether used or notPer token, only when used
Model sizeLimited by your memoryUp to the largest available
Version changesOnly when you change itWhen the provider updates or retires a model

Choose Local model when

  • Data must not leave your network
  • Usage is steady and high enough to keep hardware busy
  • You need a fixed version for a long time

Choose Hosted API when

  • You need the strongest models
  • Usage is low or uneven
  • You do not want to run inference servers

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Related terms

Local model
A local model is a language model that runs on hardware you control, a laptop, a server or your own cloud machine, rather than behind someone else's API.
Open weights
An open-weights model is one whose trained parameters are published for download, so you can run, inspect and fine-tune it on your own machines.
Quantisation
Quantisation stores a model's weights with fewer bits, such as 4 instead of 16, so it needs less memory and runs faster with a small loss of quality.

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