With local AI, a model runs on your device. With cloud AI, your request is processed on a remote service. A single app can offer both, so check the selected model and connected tools.
The practical trade-off
Local use gives you more control over the machine doing the work. It can also make you responsible for model downloads, storage, compatibility and updates. Cloud tools can reduce those setup demands, but their features and data handling depend on the provider and plan.
Offline is a workflow, not a label
LM Studio’s documentation says downloaded models can run offline, while searching for and downloading models uses the internet. That distinction is useful: setup and day-to-day use may have different connection needs.
An app can cross the boundary
A chat interface may support local models, remote endpoints, web search or connectors. Selecting a local model does not make every connected tool local. Treat each integration as a separate data path.
Try a small, non-sensitive test
- Check the model name and provider shown in the app.
- Turn off online tools for the experiment.
- Use a short prompt you can assess without uploading private files.
- After setup, try the same simple workflow offline if the app claims to support it.
- Record what still works and what asks for a connection.
Which should you choose?
Choose based on the task. You may prefer local drafting and a cloud service for a capability your machine cannot support. The useful question is where each part of the work happens and whether that matches your expectations.
Sources checked 20 October 2026: LM Studio offline documentation · Ollama FAQ. This is an explanatory guide based on published documentation, not a hands-on benchmark.