LocalAI vs Ollama: Which Should You Choose in 2026?
Choosing between LocalAI and Ollama comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
LocalAI
Self-hosted OpenAI-compatible API
Best for you if:
- • You need api tools features specifically
- • OpenAI-compatible API you can self-host
- • Runs on CPU - no expensive GPU needed
Ollama
Run open-source LLMs locally with one command
Best for you if:
- • You want the higher-rated option (8.6/10 vs 7.8/10)
- • You need terminal tools features specifically
- • Run Llama 3, Mistral, and more locally
- • One command to download and run models
| At a Glance |  LocalAI |  Ollama |
|---|---|---|
Price | Free | Free |
Best For | API Tools | Terminal Tools |
Rating | 78/100 | 86/100 |
| Feature | LocalAI | Ollama |
|---|---|---|
| Pricing Model | Free | Free |
| Editorial Score | 78 | 86 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | API ToolsHosting & Deployment | Terminal ToolsAI Agents |
How LocalAI and Ollama Compare
LocalAI
Self-hosted OpenAI-compatible API
Free · 78/100 score
Ollama
Run open-source LLMs locally with one command
Free · 86/100 score
LocalAI is a api tools tool. Ollama is in terminal tools.
Who Should Use What?
On a budget?
Both are free. Compare plans on their websites.
Go with: LocalAI
Want the highest-rated option?
LocalAI: 78/100. Ollama: 86/100.
Go with: Ollama
Value user reviews?
Neither has user reviews yet.
Go with: Ollama
3 Questions to Help You Decide
What's your budget?
Both are free. Pricing won't help you decide here.
What's your use case?
LocalAI is a api tools tool. Ollama is in terminal tools. Pick the category that matches your needs.
How important are ratings?
Ollama scores higher: 86/100 vs 78/100.
Key Takeaways
Ollama
- Higher score: 86/100 vs 78
- Completely free
- Our pick for this comparison
LocalAI
- Better fit for api tools
The Bottom Line
Ollama (86/100) is our pick.
Frequently Asked Questions
Is LocalAI or Ollama better?
Ollama scores 86/100 in our evaluation. Both are free.
What are LocalAI and Ollama used for?
LocalAI: Self-hosted OpenAI-compatible API. Ollama: Run open-source LLMs locally with one command.
What does LocalAI cost vs Ollama?
LocalAI is completely free. Ollama is completely free. Visit their websites for detailed pricing.