ciunkos.com/Glossary

Production and cost

Local LLM

A language model running on hardware you control instead of a provider’s API, so documents stay where you decide.

Open models can run on your own server, a workstation or a host in your region. You trade the convenience and quality of the largest hosted models for control over where data goes and a fixed cost. Whether a model fits depends on its size and quantization; how fast it answers depends mostly on memory bandwidth.

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Related terms

  • Quantization: Storing a model’s weights with fewer bits, so it needs less memory and runs faster, at a small cost in quality.
  • RAG (retrieval-augmented generation): Finding relevant documents first and putting them into the prompt, so the model answers from them.
  • Tokens: The pieces of text models read and write, and the unit you pay for.

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