AI engineering

Stage 2 · Lesson 8 of 9

Hosted vs local models

Prompting and model APIs

APIs give you the strongest models with no hardware to manage, but you pay per token and send your data to a provider. are ones whose trained weights (the model files) anyone can download, such as the , Qwen, Gemma or families.

They can run on your laptop through Ollama, which serves an at localhost:11434. Local models are ideal for free experiments, offline work, tests and data that must not leave the machine. But a small model on a laptop is slower and noticeably weaker than a frontier hosted model (one of the strongest current models).

Put the model behind one small function, or behind a provider-agnostic SDK that works with many providers. Then you can switch with a config change and compare models on the same inputs.

A question to check yourself, an AI practice session and 1 cheat sheet entry come with the full roadmap. Unlock

Resources for this stage

Start with· follow one of these

Practise

  • Run open models locally to test prompts and sampling settings at zero API cost

Keep handy

Also worth your time

Mark this stage as not done?