Guides & analysis
Local or cloud AI? Follow the data, then count the tradeoffs
Local and cloud describe where work happens, not a complete privacy or quality verdict. Start with the route your prompts take, then consider storage, hardware and the features you actually need.
Start with the route, not the icon
Spicy's takeOllama documents both locally run models and cloud access. Its cloud models need no model download, and can be used from an app or terminal. The familiar interface therefore does not tell you which machine does the generation. [2]
Spicy's takeBefore sharing a private conversation, ask where the prompt goes and whether optional features change that route. A useful answer names the local process or remote service, rather than simply calling the product private. [2][1]
Local control comes with operating limits
Ollama says it does not see prompts processed locally and provides a local-only mode that disables its cloud models and web search. That statement describes Ollama's behavior; it is not an audit of every app connected to it. [1]
Spicy's takeIts FAQ also describes memory limits: concurrent models need sufficient system memory or GPU memory, and larger parallel context allocations consume more memory. Local operation gives you control of this setup, along with responsibility for whether it fits your workload. [1]
Spicy's takeTest the work you actually need before buying hardware around a model name. A suitable local setup is a combination of software, available memory and acceptable behavior—not a promise attached to the word local. [1]
Cloud privacy needs feature-level reading
Ollama says it processes cloud prompts and responses to answer requests and does not train on them. Anthropic's API documentation separately describes zero data retention arrangements and a table of eligible features, with exceptions for legal requirements and flagged data. [2][3]
Spicy's takeThose are different promises. Not training on content does not, by itself, answer how long it is stored. Likewise, a retention arrangement should not be assumed to cover every file, tool or feature under the same brand. [3][2]
Spicy's takeMake a small decision sheet: where processing happens, what stays stored, which features are covered, and what limits you accept. Choose the arrangement that answers those questions for your use—not the label that sounds most reassuring. [3][1][2]
Sources & further reading
Source material checked Nov 11, 2026. Linked material may change after publication.
- Ollama FAQ ↗
Ollama · Primary source
- Ollama Cloud documentation ↗
Ollama · Primary source
- API and data retention ↗
Anthropic · Primary source