Build your own AI server with LocalAI on Linux. A detailed guide on running LLMs, image generation, and TTS with 100% OpenAI API compatibility, fully offline.
After 6 months running OpenAI, Claude, and Gemini in production, I've compiled a real-world cost comparison, the strengths and weaknesses of each platform, and a framework for selecting the right AI API for each task type. Switching to model routing cut my costs from $340 to $90/month at the same throughput.
A guide to running LLMs locally with Ollama: comparing Ollama, llama.cpp, and LM Studio to pick the right approach, installing on Linux/macOS, running Mistral and Llama models, integrating the OpenAI-compatible REST API, and tips for setting up a shared server for your team.