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This is something that I think about quite a bit and am grateful for this write-up. The amount of friction to get privacy today is astounding.
> The amount of friction to get privacy today is astounding

I don't understand this.

It's easy to get a local LLM running with a couple commands in the terminal. There are multiple local LLM runners to choose from.

This blog post introduces some additional tools for sandboxed code execution and browser automation, but you don't need those to get started with local LLMs.

There are multiple local options. This one is easy to start with: https://ollama.com/

> It's easy to get a local LLM running

Easy for what percentage of people?

It's the hardware more than the software that is the limiting factor at the moment, no? Hardware to run a good LLM locally starts around $2000 (e.g. Strix Halo / AI Max 395) I think a few Strix Halo iterations will make it considerably easier.
Thanks for sharing. Note that the GitHub at the end of the article is not working…
Open Web UI is a great alternative for a chat interface. You can point to an OpenAI API like vLLM or use the native Ollama integration and it has cool features like being able to say something like “generate code for an HTML and JavaScript pong game” and have it display the running code inline with the chat for testing
Mr Stallman? Richard, is that you?
I'm constantly tempted by the idealism of this experience, but when you factor in the performance of the models you have access to, and the cost of running them on-demand in a cloud, it's really just a fun hobby instead of a viable strategy to benefit your life.

As the hardware continues to iterate at a rapid pace, anything you pick up second-hand will still deprecate at that pace, making any real investment in hardware unjustifiable.

Coupled with the dramatically inferior performance of the weights you would be running in a local environment, it's just not worth it.

I expect this will change in the future, and am excited to invest in a local inference stack when the weights become available. Until then, you're idling a relatively expensive, rapidly depreciating asset.

> anything you pick up second-hand will still deprecate at that pace

Not really? The people who do local inference most (from what I've seen) are owners of Apple Silicon and Nvidia hardware. Apple Silicon has ~7 years of decent enough LLM support under it's belt, and Nvidia is only now starting to depreciate 11-year-old GPU hardware in drivers.

If you bought a decently powerful inference machine 3 or 5 years ago, it's probably still plugging away with great tok/s. Maybe even faster inference because of MoE architectures or improvements in the backend.

> As the hardware continues to iterate at a rapid pace, anything you pick up second-hand will still deprecate at that pace, making any real investment in hardware unjustifiable.

Can you explain your rationale? It seems that the worst case scenario is that your setup might not be the most performant ever, but it will still work and run models just as it always did.

This sounds like a classical and very basic opex vs capex tradeoff analysis, and these are renowned for showing that on financial terms cloud providers are a preferable option only in a very specific corner case: short-term investment to jump-start infrastructure when you do not know your scaling needs. This is not the case for LLMs.

OP seems to have invested around $600. This is around 3 months worth of an equivalent EC2 instance. Knowing this, can you support your rationale with numbers?

I think the local LLM scene is very fun and I enjoy following what people do.

However every time I run local models on my MacBook Pro with a ton of RAM, I’m reminded of the gap between local hosted models and the frontier models that I can get for $20/month or nominal price per token from different providers. The difference in speed and quality is massive.

The current local models are very impressive, but they’re still a big step behind the SaaS frontier models. I feel like the benchmark charts don’t capture this gap well, presumably because the models are trained to perform well on those benchmarks.

I already find the frontier models from OpenAI and Anthropic to be slow and frequently error prone, so dropping speed and quality even further isn’t attractive.

I agree that it’s fun as a hobby or for people who can’t or won’t take any privacy risks. For me, I’d rather wait and see what an M5 or M6 MacBook Pro with 128GB of RAM can do before I start trying to put together another dedicated purchase for LLMs.

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> I expect this will change in the future

I'm really hoping for that too. As I've started to adopt Claude Code more and more into my workflow, I don't want to depend on a company for day-to-day coding tasks. I don't want to have to worry about rate limits or API spend, or having to put up $100-$200/mo for this. I don't want everything I do to be potentially monitored or mined by the AI company I use.

To me, this is very similar to why all of the smart-home stuff I've purchased all must have local control, and why I run my own smart-home software, and self-host the bits that let me access it from outside my home. I don't want any of this or that tied to some company that could disappear tomorrow, jack up their pricing, or sell my data to third parties. Or even use my data for their own purposes.

But yeah, I can't see myself trying to set any LLMs up for my own use right now, either on hardware I own, or in a VPS I manage myself. The cost is very high (I'm only paying Anthropic $20/mo right now, and I'm very happy with what I get for that price), and it's just too fiddly and requires too much knowledge to set up and maintain, knowledge that I'm not all that interested in acquiring right now. Some people enjoy doing that, but that's not me. And the current open models and tooling around them just don't seem to be in the same class as what you can get from Anthropic et al.

But yes, I hope and expect this will change!

Anything you build in the LLM cloud will be. Must be. Rug pulled either via locking success or utter bankruptcy or just a model context prompt change.

Unless you're a billionaire with pull, you're building tools you cant control, cant own and are ephermap wisps.

That's even if you can even trust these large models in consistency.

>but when you factor in the performance of the models you have access to, and the cost of running them on-demand in a cloud, it's really just a fun hobby instead of a viable strategy to benefit your life.

Its because people are thinking too linearly about this, equating model size with usability.

Without going into too much detail because this may be a viable business plan for me, but I have had very good success with Gemma QAT model that runs quite well on a 3090 wrapped up in a very custom agent format that goes beyond simple prompt->response use. It can do things that even the full size large language models fail to do.

really depends on whether local model satisfies your own usage right? if it works locally well enough, just package it up and be content? as long as it's providing value now at least it's local...
AFAICT, the RTX 4090 I bought in 2023 has actually appreciated rather than depreciated.
Everything you're saying is FUD. There's immense value in being able to do local or remote as you please and part of it is knowledge.

Also, at the end of the day is about value creates and AI may allow some people to generate more stuff but overall value still tends to align with who is better at the craft pre AI. Not who pays more.

It's not that bad. If you're an adult making a living wage, and you're literate in some IT principles and AGI operations know-how, it's not a major onetime investment. And you can always learn. I'm sure your argument deterred a lot of your parents' generation from buying computers, too. Where would most of us be if not for that? This is a second transistor moment, right in our lifetime.

Life is about balance. If you Boglehead everything and then die before retirement, did you really live?

once the models behind API start monetization of their results, their outputs will get much worse. Its just a matter of time.
Hardware is slower to design and manufacture than we expect as software people.

What I think we’ll see is: people will realize some things that suck in the current first-generation of laptop NPUs. The next generation of that hardware will get better as a result. The software should generally get better and lighter. We’re currently at step -.5 here, because ~nobody has bought these laptops yet! This will happen in a couple years.

Meanwhile, eventually the cloud LLM hosts will run out of investors money to subsidize our use of their computers. They’ll have to actually start charging enough to make a profit. On top of what local LLM folks have to pay, the cloud folks will have to pay:

* Their investors

* Their security folks

* The disposal costs for all those obsolete NVIDIA cards

Plus the remote LLM companies will have the fundamental disadvantage that your helpful buddy that you use as a psychologist in a pinch is also reporting all your darkest fears to Microsoft or whoever. Or your dev tools might be recycling all the work you thought you were doing for your job, back into their training set. And might be turned off. It just seems wildly unappealing.

Halfway through he gives up and uses remote models. The basic premise here is false.

Also, the term “remote code execution” in the beginning is misused. Ironically, remote code execution refers to execution of code locally - by a remote attacker. Claude Code does in fact have that, but I’m not sure if that’s what they’re referring to.

The blog says more about keeping the user data private. The remote models in the context are operating blind. I am not sure why you are nitpicking, almost nobody reading the blog would take remote code execution in that context.
That is fairly cool. I was talking about this on X yesterday: another angle however, I use a local web scraper and search engine via meilisearch the main tech web sites I am interested in. For my personal research I use three web search APIs, but there is some latency. Having a big chuck of the web that I am interested in available locally with close to zero latency is nice when running local models, my own MCP services that might need web search, etc.
you might want to check out what we built -> https://inference.sh supports most major open source/weight models from wan 2.2 video, qwen image, flux, most llms, hunyan 3d etc.. works in a containerized way locally by allowing you to bring your own gpu as an engine (fully free) or allows you to rent remote gpu/pool from a common cloud in case you want to run more complex models. for each model we tried to add quantized/ggufs versions to even wan2.2/qwen image/gemma become possible to execute with as little as 8gb vram gpus. mcp support coming soon in our chat interface so it can access other apps from the ecosystem.
The website is very confusing. Where can I download the application? Is there a GitHub repository?
if you ever end up trying to take this in the mobile direction, consider running on-device AI with Cactus –

https://cactuscompute.com/

Blazing-fast, cross-platform, and supports nearly all recent OS models.

Yea in an ideal world there would be a legal construct around AI agents in the cloud doing something on your behalf that could not be blocked by various stakeholders deciding they don't like the thing you are doing even if totally legal. Things that would be considered fair use, or maybe annoying to certain companies should not be easy for companies to just wholesale block by leveraging business relationships. Barring that, then yea, a local AI setup is the way to go.
Super cool and well thought out!

I'm working on something similar focused on being able to easily jump between the two (cloud and fully local) using a Bring Your Own [API] Key model – all data/config/settings/prompts are fully stored locally and provider API calls are routed directly (never pass through our servers). Currently using mlc-llm for models & inference fully local in the browser (Qwen3-1.7b has been working great)

[1] https://hypersonic.chat/

I think I still prefer local but I feel like that's because that most AI inference is kinda slow or comparable to local. But I recently tried out cerebras or (I have heard about groq too) and honestly when you try things at 1000 tk/s or similar, your mental model really shifts and becomes quite impatient. Cerebras does say that they don't log your data or anything in general and you would have to trust me to say that I am not sponsored by them (Wish I was tho) Its just that they are kinda nice.

But I still hope that we can someday actually have some meaningful improvements in speed too. Diffusion models seem to be really fast in architecture.

Its all about context and purpose, isn't it? For certain lightweight uses cases, especially those concerning sensitive user data, a local implementation may make a lot of sense.
Self hosted and offline AI systems would be great for privacy but the hardware and electricity cost are much too high for most users. I am hoping for a P2P decentralized solution that runs on distributed hardware not controlled by a single corporation.
> LLMs: Ollama for local models (also private models for now)

Incidentally, I decided to try to Ollama macOS app yesterday, and the first thing it tries to do upon launch is try to connect to some google domain. Not very private.

https://imgur.com/a/7wVHnBA

This is fantastic work. The focus on a local, sandboxed execution layer is a huge piece of the puzzle for a private AI workspace. The `coderunner` tool looks incredibly useful.

A complementary challenge is the knowledge layer: making the AI aware of your personal data (emails, notes, files) via RAG. As soon as you try this on a large scale, storage becomes a massive bottleneck. A vector database for years of emails can easily exceed 50GB.

(Full disclosure: I'm part of the team at Berkeley that tackled this). We built LEANN, a vector index that cuts storage by ~97% by not storing the embeddings at all. It makes indexing your entire digital life locally actually feasible.

Combining a local execution engine like this with a hyper-efficient knowledge index like LEANN feels like the real path to a true "local Jarvis."

Code: https://github.com/yichuan-w/LEANN Paper: https://arxiv.org/abs/2405.08051

> Even with help from the "world's best" LLMs, things didn't go quite as smoothly as we had expected. They hallucinated steps, missed platform-specific quirks, and often left us worse off.

This shows how little native app training data is even available.

People rarely write blog posts about designing native apps, long winded medium tutorials don't exist, heck even the number of open source projects for native desktop apps is a small percentage compared to mobile and web apps.

Historically Microsoft paid some of the best technical writers in the world to write amazing books on how to code for Windows (see: Charles Petzold), but now days that entire industry is almost dead.

These types of holes in training data are going to be a larger and larger problem.

Although this is just representative of software engineering in general - few people want to write native desktop apps because it is a career dead end. Back in the 90s knowing how to write Windows desktop apps was great, it was pretty much a promised middle class lifestyle with a pretty large barrier to entry (C/C++ programming was hard, the Windows APIs were not easy to learn, even though MS dumped tons of money into training programs), but things have changed a lot. Outside of the OS vendors themselves (Microsoft, Apple) and a few legacy app teams (Adobe, Autodesk, etc), very few jobs exist for writing desktop apps.

> This shows how little native app training data is even available.

FWIW, we have very few desktop native apps nowadays. Most apps are either mobile, cli or web-based. Heck, I’m sure there’s more material online on writing cli apps than gui apps.

People are talking about AI everywhere, but where can we find documentation, examples, and proof of how it works? It all ends with chat. Which chat is better and cheaper? This local story is just using some publicly available model, but downloaded? When is this going to stop?
On a similar vibe, we developed app.czero.cc to run an LLM inside your chrome browser on your machine hardware without installation (you do have to download the models). Hard to run big models, but it doesnt get more local than that without having to install anything.
I didn't see any mention of the hardware OP is planning to run this on -- any hints?
Infra notwithstanding - I'd be interested in hearing how much success they actually had using a locally hosted MCP-capable LLM (and which ones in particular) because the E2E tests in the article seem to be against remote models like Claude.