kitio.aiOllama vs LocalAI
A side-by-side look at pricing plans, free tiers, features, pros and cons, updated for 2026. LocalAI is completely free, while Ollama is freemium.
At a glance
Best for
Category
Pricing model
Starting price
Free plan
Made by
Based in
Rating
Key features
- One-command model runs
- OpenAI-compatible local API
- Model library
- Desktop chat app
- Ollama Cloud
- OpenAI-compatible API
- Multiple backends
- Text, image and audio
- Model gallery
- Docker images
| Feature | Ollama | LocalAI |
|---|---|---|
| Best for | Run open models locally with one command, plus optional cloud models | Self-hosted, OpenAI-compatible API for local text, image and audio models |
| Category | Models & APIs | Models & APIs |
| Pricing model | Freemium | Free |
| Starting price | $20/mo | Free |
| Free plan | Yes | Yes, fully free |
| Made by | Ollama | LocalAI contributors |
| Based in | United States | – |
| Rating | No ratings yet | No ratings yet |
| Key features |
|
|
Pricing compared
LocalAI is completely free, while Ollama is freemium.
Free plan
Cheapest paid plan
Top plan
Free trial
5 plans
Pay as you go
Free
- Run models locally for free
- Pay per token for cloud models
- 3 concurrent requests
Pro
$20/mo
- $60 of usage credits per month
- Access to larger pro models
Max
$100/mo
- $300 of usage credits per month
- 10 concurrent requests
- Early access to new models
Team
$500/mo
- Unlimited users
- $1,000 shared credits per month
- Centralized billing, priority support
Enterprise
Custom
- Cost budgets per user and key
- Dedicated Slack support
Prices in USD, checked Oct 28, 2026 or later. Plans change often, so confirm on each tool's site before you buy.
Pros and cons
Ollama
- Very easy local setup
- Huge tool ecosystem
- Free for local use
- Fewer tuning options than llama.cpp
- Large models need strong hardware
- Cloud limits can change
LocalAI
- One API for many model types
- Runs without a GPU
- Fully self-hosted
- Setup can be fiddly
- Performance varies by backend
- Smaller community than Ollama
Which one should you choose?
Choose Ollama if you want:
- Very easy local setup
- Huge tool ecosystem
- Free for local use
Watch out: fewer tuning options than llama.cpp.
Choose LocalAI if you want:
- One API for many model types
- Runs without a GPU
- Fully self-hosted
Watch out: setup can be fiddly.
Ollama vs LocalAI FAQ
What is the difference between Ollama and LocalAI?
Ollama: Run open models locally with one command, plus optional cloud models. LocalAI: Self-hosted, OpenAI-compatible API for local text, image and audio models. Both are models & apis tools.
Is Ollama or LocalAI cheaper?
LocalAI is completely free, while Ollama is freemium.
Do Ollama and LocalAI have free plans?
Ollama: Yes. LocalAI: Yes, fully free.
Who makes Ollama?
Ollama is made by Ollama, based in United States.
Who makes LocalAI?
LocalAI is made by LocalAI contributors.
Which should I choose, Ollama or LocalAI?
Choose Ollama if you value very easy local setup and huge tool ecosystem. Choose LocalAI if you value one api for many model types and runs without a gpu.