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Ollama vs LM Studio

Ollama is an open-source command-line tool and server; LM Studio is a closed-source desktop app with a built-in chat window and model browser.

Pick Ollama if…

You are comfortable in a terminal, want MIT-licensed software, or want a local server that other apps can plug into.

Pick LM Studio if…

You want a graphical app to browse, download and chat with models, and you accept closed-source software.

Price

  • Freemium
  • Open source
  • Freemium

Starting price

$20/mo (Pro, optional cloud plan); $200/yr billed annually
$20 USD/month (Bionic+, optional cloud models)

Free plan

Yes
Yes

Open source

Yes
No

Works on

macOS, Windows, Linux
macOS, Windows, Linux
Try Ollama (opens the Ollama website in a new tab)Try LM Studio (opens the LM Studio website in a new tab)

Both run open AI models on your own computer and both are free to run locally. Ollama's pricing page says running models on your own hardware is always unlimited, and LM Studio's blog says the app has been free for personal use and, since July 2025, is also free at work.

The licences differ. Ollama's repository is MIT-licensed. LM Studio's desktop app is not open source: its terms allow use 'solely for Your personal and / or internal business purposes' and prohibit reverse engineering and redistribution, though its CLI and SDKs are MIT-licensed.

Both sell optional paid plans for cloud models. Ollama Pro is $20/mo ($200/yr billed annually); LM Studio's Bionic+ is $20 USD/month and Pro is $100 USD/month. Neither is required for local use.

Platforms overlap: both cover macOS, Windows and Linux. Ollama's docs require macOS 14 or newer and Windows 10 22H2 or newer. LM Studio's docs require Apple silicon and macOS 14 or newer, and recommend 16GB RAM.

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Last updated 16 October 2026. How we make money