Small businesses are increasingly turning to locally hosted AI models to avoid the costs of API services. Running a model on your hardware keeps data private.
Hardware costs have dropped significantly in 2026. A modest workstation is now sufficient for most business needs.
Why Host Locally?
Cost and control are key. API costs add up. Local hosting costs once, then scales for free.
Selecting Hardware
Focus on VRAM. It is the most important spec. NVIDIA remains the standard, but alternatives are emerging.
Deployment Workflow
Use tools like Ollama or LM Studio. Docker is ideal for professional maintenance.
FAQ
Do I need a GPU?
For decent performance, yes.
How much RAM?
32GB is the sweet spot.
Is it difficult?
No more than any other server.
Can I fine-tune?
Start with off-the-shelf models first.
