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Updated 2025-02-23

Products

Ollama

Run LLMs locally. Free, open-source. No API bills. Cost is hardware and power.

Entry:Free (hardware cost) Data:Full Best for:Data sovereignty, high volume

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Use cases

Drafting and Q&A Code assistance Document analysis Private/internal use cases Offline or air-gapped Cost-predictable high volume

Pricing model

Free software. No per-token costs. You pay for: GPU/hardware, electricity, and maintenance.
Software
Free
Open source, MIT license
Hardware
One-off
GPU required; 8GB+ VRAM for smaller models, 24GB+ for 14B, 40GB+ for 70B
Power
Ongoing
See our Self-hosted GPU Comparisons for £/1M token estimates

Source: Ollama pricing

Business fit

Pros

  • No data leaves your premises
  • Predictable cost (hardware + power)
  • No per-token bills
  • Wide model support (Llama, Mistral, Qwen, etc.)
  • Simple local setup

Cons

  • Upfront hardware cost
  • You manage updates and security
  • Model quality depends on hardware
  • No managed SLA
When it makes sense: Good for data-sensitive workloads, high volume where cloud costs would exceed hardware, or air-gapped environments. Compare with our GPU cost guide.

Data handling

All data stays on your hardware. No data sent to third parties. Full control.
GDPR / compliance: Data never leaves your infrastructure.
Data sovereignty: Complete data sovereignty.
Ollama data policy
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