Ollama is an open-source tool that lets developers and AI enthusiasts run large language models directly on their own computers instead of using cloud services. Popular among privacy-conscious users and those working on AI projects, it supports various models like Llama, DeepSeek, and Mistral. With Ollama, users can manage, customize, and interact with LLMs through a simple command-line interface or HTTP API, making local AI development more accessible and secure.

Running large language models locally with Ollama is a breath of fresh air for privacy-minded teams and developers. The ability to keep sensitive data off the cloud, tap into a wide library of open-source models, and customize them via Model files makes Ollama genuinely useful for businesses building internal chatbots, automating workflows, or experimenting with multimodal AI. The built-in HTTP API also streamlines integration with existing applications.

However, Ollama’s resource demands are sizable, and the need to download hefty models plus manage backend servers means it is not plug and play. If your hardware can handle it and you value data control, Ollama is a strong pick, but be prepared for some technical legwork.

Use Ollama's Model files to create custom versions of LLMs tailored to your specific business needs, such as customer service or content generation; define a "SYSTEM" message within the Model file that provides the model with a specific role and instructions relevant to your business, and then fine-tune parameters like "temperature" to control the creativity and accuracy of the model's responses, resulting in a highly specialized AI assistant that can improve efficiency and output quality.