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Local LLMs: Running AI Models on Your Own Hardware
Image: AI-generated illustration for Local LLMs

Local LLMs: Running AI Models on Your Own Hardware

Neural Intelligence

Neural Intelligence

6 min read

Everything you need to know about running LLMs locally—from hardware requirements to software tools to use cases for private, offline AI.

Why Run LLMs Locally?

While cloud APIs are convenient, there are compelling reasons to run AI models on your own hardware: privacy, cost control, offline capability, and customization freedom.

Benefits and Trade-offs

Why Local?

BenefitDescription
PrivacyData never leaves your machine
CostNo per-token fees
OfflineWorks without internet
SpeedNo network latency
ControlFull customization
LearningUnderstand how it works

Trade-offs

ConsiderationCloudLocal
Model qualityBest modelsSmaller, capable
Setup complexityNoneSome required
Hardware costNoneSignificant upfront
Ongoing costPer-useElectricity only
UpdatesAutomaticManual

Hardware Requirements

By Model Size

Model SizeMinimum GPURecommended
7B (Q4)6GB VRAM8GB VRAM
13B (Q4)10GB VRAM16GB VRAM
33B (Q4)20GB VRAM24GB VRAM
70B (Q4)40GB VRAM48GB+ VRAM
180B+80GB+Multiple GPUs

GPU Options

GPUVRAMModels SupportedPrice
RTX 306012GB7B-13B$300
RTX 309024GBUp to 33B$800
RTX 407012GB7B-13B (fast)$550
RTX 408016GBUp to 13B$1000
RTX 409024GBUp to 33B (fast)$1600
A10040/80GBAll sizes$10K+

Apple Silicon

ChipUnified MemoryModels
M18-16GB7B
M1 Pro/Max16-64GB7B-33B
M2 Pro/Max16-96GB7B-70B
M3 Pro/Max18-128GB7B-70B
M4 Pro/Max24-128GB7B-70B+

CPU-Only (Slower)

For models with no GPU:

  • 32GB+ RAM recommended
  • llama.cpp CPU mode
  • Expect 5-20 tokens/second
  • Still usable for many tasks

Software Tools

Ollama (Recommended Start)

# Install
curl https://ollama.ai/install.sh | sh

# Run a model
ollama run llama3.1

# API server
ollama serve
curl http://localhost:11434/api/generate -d '{
  "model": "llama3.1",
  "prompt": "Hello, world!"
}'

Pros: Easiest to use, just works Cons: Less configuration options

llama.cpp

# Clone and build
git clone https://github.com/ggerganov/llama.cpp
cd llama.cpp
make LLAMA_CUDA=1  # For NVIDIA

# Run model
./llama-server -m models/llama-3.1-8b-q4.gguf

# Use the API
curl http://localhost:8080/completion -d '{"prompt": "Hello"}'

Pros: Maximum performance, highly optimized Cons: More technical setup

LM Studio

  • GUI application
  • Download models easily
  • One-click inference
  • OpenAI-compatible API
  • Windows, Mac, Linux

Best for: Non-technical users

vLLM

pip install vllm
python -m vllm.entrypoints.openai.api_server \
  --model meta-llama/Llama-3.1-8B-Instruct

Pros: Production-grade, high throughput Cons: Requires more setup

Model Selection

Best Open Models for Local

ModelSizeQualityUse Case
Llama 3.1 8B8BExcellentGeneral chat
Llama 3.1 70B70BBest openWhen you have hardware
Mistral 7B7BVery goodEfficiency
Phi-3 Mini3.8BGreat for sizeMobile/edge
Gemma 2 9B9BExcellentGoogle alternative
Qwen 2.5VariousMultilingualMultiple languages
CodeLlamaVariousCode focusProgramming
DeepSeek CoderVariousCodeCoding tasks

Quantization Levels

QuantizationSize ReductionQuality Loss
FP162xNone
Q8_04xMinimal
Q6_K5xVery small
Q5_K_M6xSmall
Q4_K_M8xNoticeable
Q3_K_M10xMore noticeable
Q2_K12xSignificant

Where to Get Models

SourceDescription
Hugging FacePrimary source
Ollama LibraryPre-configured for Ollama
TheBlokeQuantized versions
LM StudioBuilt-in downloads

Use Cases

When Local Makes Sense

Use CaseWhy Local
Personal assistantPrivacy
Code completionIDE integration
Document analysisSensitive data
Offline workInternet not required
High volumeCost savings
ExperimentationNo rate limits

When Cloud is Better

ScenarioWhy Cloud
Best quality neededGPT-4, Claude 3
Occasional useHardware not justified
Large contextLimited local memory
Multi-userServer economics

Performance Optimization

Tips

OptimizationImpact
Use quantized modelsMajor memory savings
Batch requestsHigher throughput
Flash attentionFaster inference
GPU layer offloadingBetter utilization
Temperature/top_p tuningQuality vs speed

Expected Performance

Setup7B Q413B Q4
RTX 3060 (12GB)40 t/s25 t/s
RTX 4090 (24GB)100 t/s70 t/s
M2 Pro (32GB)30 t/s20 t/s
M3 Max (128GB)50 t/s40 t/s

Getting Started

Quick Start Path

StepAction
1Check your hardware (GPU, RAM)
2Install Ollama
3Run ollama run llama3.1
4Try different models
5Integrate with your tools

Integration Options

IntegrationMethod
IDEContinue.dev, Codeium
TerminalShell scripts, CLI
ApplicationsOpenAI-compatible API
Custom codePython libraries

Future Trends

What's Coming

  1. More efficient models: Same quality, smaller size
  2. Better Apple Silicon: Optimized for M-series
  3. NPU acceleration: Windows AI PC support
  4. On-device fine-tuning: Personalization
  5. Hardware improvements: Consumer AI chips

"Local LLMs are becoming increasingly viable. With the right hardware and a quality open-source model, you can have a capable AI assistant that's completely private and costs nothing to run."

Neural Intelligence

Written By

Neural Intelligence

AI Intelligence Analyst at NeuralTimes.

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