What stays on your computer and what does not

Does running locally really keep my data private?

For the chat itself, the tools say yes. LM Studio's documentation says nothing you enter when chatting with models leaves your device.¹ Ollama says it runs locally.²

But "local" is a setting, not a guarantee. Both tools do other things, and some of those use the internet. Everything here was checked on 28 October 2026 against their own pages.¹

What do I still need the internet for?

Mostly fetching things. LM Studio lists the jobs that need a connection.¹

• Searching for models. The Discover tab makes network requests.
• Downloading new models, and the model catalogue details.
• Downloading runtimes, the engines that run model files.
• Checking for app updates, since the app updater makes a network request.¹

Ollama is similar. It pulls models from the Internet.²

What if I turn on a cloud option?

Then it's no longer local. Ollama's setup prompts offer a choice between cloud models and a local one.³ On cloud models, Ollama's FAQ says it processes your prompts and responses to provide the service.²

If you want to be sure, Ollama can run in local only mode. Turning its cloud features off means you will lose the ability to use Ollama's cloud models and web search.² The FAQ gives the exact setting.

What about documents I attach?

LM Studio says a document dragged into the app stays on your machine, and the processing is done locally.¹ That covers its built-in document chat. It doesn't cover add-ons.

Can other computers reach my model?

By default, Ollama binds 127.0.0.1 port 11434, which is your own machine.² LM Studio can also serve local models to other programs, locally and on the network.⁴ Serving to the network is a different setup from the default, so ask whoever manages your network before changing it.

Do add-ons change the picture?

They can. LM Studio can connect MCP servers, and you can use them with your local models.⁴ An add-on is separate software. What it does with your text depends on how it was built, so read what it does before you connect it.

What rules should staff follow?

A local model doesn't change your business's own rules. Passwords, keys, card details and customer files should stay out of prompts unless your own written policy allows them.

Privacy law differs by country. Whether a use is allowed under it depends on where you operate, so check your own regulator's pages, not this one. Write down who may use the tool, for which jobs, and what must never be typed in. Staff can't follow a rule they've never been given. Review it when you update the software, because new versions can add features, including cloud ones.

To see what's going on in the first place, start with what running locally means. Each tool has its own write-up too: one on Ollama, one on LM Studio.