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Run OpenClaw 100% Locally with Ollama (No API Bills)

Run OpenClaw fully local and free with Ollama — no API keys, nothing leaving your machine. Model choices, the config, hardware reality, and where it falls short.

MGMCSA Guru Team March 11, 2026 5 min read
OpenClaw connected to a local Ollama model running entirely on the user's own machine

The most private way to run OpenClaw is to keep the brain on your own machine. With Ollama serving a local model, OpenClaw makes no API calls for inference, costs nothing per use, and keeps your prompts and files off anyone else’s servers. For a personal assistant that touches your files and messages, that combination of free and private is hard to argue with.

The honest trade is performance: a model small enough to run on your hardware won’t match the best hosted models, and responses are slower. This guide covers the setup, realistic model and hardware choices, and exactly where local falls short so you can decide if it fits. OpenClaw should already be installed — see the install guide if not.

What “local” gets you, and what it doesn’t

Two things are true at once. The model runs on your machine, so inference is free and private. But skills that reach out — web search, sending a message through a channel — still use the network, because that’s their job. “Local” means the thinking is local, not that the assistant is sealed off from the internet entirely.

Step 1: install Ollama and pull a model

Install Ollama from ollama.com, then pull a model. Inside WSL or your Linux/macOS shell:

ollama pull qwen2.5-coder
ollama run qwen2.5-coder "hello"

The second command is a quick sanity check that the model loads and responds. Pick a model size your hardware can handle — more on that below. Ollama serves an OpenAI-compatible endpoint locally, usually at http://localhost:11434, which is what OpenClaw will connect to.

Step 2: point OpenClaw at the local endpoint

Configure OpenClaw’s model provider to use Ollama’s local endpoint. No API key is needed for local Ollama (a placeholder value is fine where one is required). Confirm the current config keys in the OpenClaw repo; the values look like:

{
  "model": {
    "provider": "openai-compatible",
    "base_url": "http://localhost:11434/v1",
    "api_key": "ollama",
    "model": "qwen2.5-coder"
  }
}

The base URL points at your own machine, the model name matches what you pulled with Ollama, and the key is a throwaway placeholder since nothing’s being authenticated. That’s the whole connection.

Step 3: the hardware reality

This is where expectations need calibrating. Local model speed depends on your hardware:

Rough hardware expectations

Setup What to expect
Modern laptop CPU, small model Works, but slow — fine for occasional tasks
GPU with modest VRAM, small/mid model Comfortable for everyday assistant use
GPU with ample VRAM, larger model Best local quality, still below top cloud models

There’s no shame in running a small model. An assistant that answers in two seconds on a 7-billion-parameter coder model beats one that takes half a minute on something larger. Test on your actual machine and let speed guide the size.

Step 4: test it on a real task

Start OpenClaw and give it something that uses the model and a local capability:

Read the files in this folder and write a one-paragraph summary of the project.

If it reads the files and produces a reasonable summary at a speed you can live with, your local setup works. If responses crawl, drop to a smaller model — that’s almost always the fix.

OpenClaw + Ollama checklist

  • Ollama installed and a model pulled
  • Quick ollama run test passes
  • OpenClaw provider set to http://localhost:11434/v1
  • Model name in config matches the pulled model
  • Model size matched to your hardware for responsive replies
  • Tested on a real file task

Where local falls short

Be clear-eyed about the limits so you’re not disappointed:

  • Hard reasoning and long context. Consumer-sized local models lag the best hosted ones here. Complex, multi-step tasks may stumble where a cloud model wouldn’t.
  • Speed. Even on a good GPU, local inference is usually slower than a hosted API.
  • The biggest models are out of reach. The frontier-quality models don’t fit on typical consumer hardware.

The practical move many people make: run local as the default for privacy and zero cost, and keep a cheap cloud option like DeepSeek configured for the occasional task that needs more horsepower. Because OpenClaw is model-agnostic, switching is just a config change.

Wrapping up

Running OpenClaw on Ollama gives you a free, private assistant whose thinking never leaves your machine — install Ollama, pull a model that fits your hardware, point OpenClaw at the local endpoint, and you’re running with no API bill. The trade is performance: pick a model your GPU can keep fast, and accept that the hardest tasks still favor a cloud model.

If you hit the limits of local, the lowest-cost cloud option is the DeepSeek setup, while GLM is the flat-plan route for heavier use.

Frequently asked questions

Can OpenClaw run fully offline with Ollama?

Yes, for the model side. With Ollama serving a local model, OpenClaw's brain runs entirely on your machine with no API calls and no per-token cost. Skills that reach the web still need internet, but the model inference is local and private.

Is running OpenClaw on Ollama actually free?

There's no API bill — you pay only in electricity and hardware. The model runs on your own CPU or GPU through Ollama. So it's free per use, in exchange for needing a capable enough machine and slower responses than a hosted frontier model.

What hardware do I need for OpenClaw with Ollama?

It depends on the model size. Small models run on a modern laptop CPU, but slowly; mid-size models want a GPU with enough VRAM for comfortable speed. More RAM and a decent GPU make a big difference. Start with a small model and size up if your hardware allows.

Which local model works best with OpenClaw?

A capable coding-and-reasoning model in a size your hardware can run — Qwen-based coder models and similar are common picks. Match the model to your VRAM rather than chasing the biggest one; a smaller model that runs fast beats a large one that crawls.

Does a local model match a cloud model in OpenClaw?

Not at the top end. Local models that fit on consumer hardware lag the best hosted models on hard reasoning and long context. For privacy, offline use, and zero cost they're excellent; for the toughest tasks, a cheap cloud model like DeepSeek still pulls ahead.

Sources & further reading

Official vendor documentation referenced while writing this guide.

MG

MCSA Guru Team

IT & Systems Administration

We are working IT pros and system administrators who spend our days in Windows Server, Microsoft 365, and the wider Microsoft stack. MCSA Guru is where we write down the fixes and walkthroughs we wish we had found the first time.

MCSA Guru provides independent, educational IT guidance. Microsoft, Windows, Windows Server, Microsoft 365, Exchange, and Microsoft Teams are trademarks of Microsoft Corporation; Docker is a trademark of Docker, Inc. MCSA Guru is not affiliated with or endorsed by Microsoft or Docker. Always test changes in a safe environment before applying them in production.

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