What is LocalAI?
LocalAI is an open source (MIT) AI engine that runs text, voice, vision, image, video, 3D and agent workloads through one local runtime. A single binary exposes an OpenAI-compatible API, and it also speaks the Anthropic, Ollama and ElevenLabs APIs, so existing clients usually only need a different URL. Each model can run on a different engine such as llama.cpp, vLLM, SGLang or MLX, and engines are loaded as separate backends only when a model needs them.
In practice you can chat with models, transcribe and diarize speech, run realtime voice conversations over WebRTC, synthesize or clone voices, detect objects and faces, estimate depth, and generate images, video or music, all on your own hardware. The project states that every feature ships a CPU path first, with GPUs (CUDA, ROCm, SYCL, Metal, Vulkan) optional for speed, and that you can add machines to a cluster with routing and failover.
Key features
- OpenAI-compatible API with drop-in support for Anthropic, Ollama and ElevenLabs APIs
- Swappable inference engines per model (llama.cpp, vLLM, SGLang, MLX)
- Realtime voice conversations over WebRTC with streaming transcription and TTS
- Speaker diarization, sound event detection and face/voice recognition
- Image, video, music and 3D generation via diffusers and other backends
- Distributed clustering with smart routing, autoscaling and failover
Who is it for
- Developers building AI applications who want to avoid cloud APIs
- Organizations needing data privacy and on-premise deployment
- Users with CPU-only or modest hardware
- Teams running multi-machine GPU clusters
Pros and cons
- Runs without a GPU, with CPU support tested in CI
- Open source under the MIT license and free of licensing cost
- Drop-in compatibility with existing OpenAI-style clients
- Larger model workloads need capable hardware for good speed
- Setup and multi-engine configuration require technical knowledge
LocalAI pricing
The vendor does not publish prices in a readable form (often pricing is shown only after signing in).
Is LocalAI free?
Yes, there is a free plan. Open source under the MIT license; the software itself is free to install and run.
LocalAI alternatives
| Tool | Price from | Free plan | Category |
|---|---|---|---|
 Grok API | 0.02 USD | ? | APIs & models |
 Cartesia | 5 USD/mo | yes | APIs & models |
 Deepgram | 0.0048 USD/mo | trial | APIs & models |
 AssemblyAI | not listed | ? | APIs & models |
 MiniMax | 0.3 USD input / 1.2 USD output per M tokens | ? | APIs & models |
 Cerebras | 5 USD | trial | APIs & models |
FAQ
What is LocalAI used for?
Open source runtime that runs LLMs, voice, vision, image, video and agent models locally on any hardware, including CPU-only machines.
Is LocalAI free?
Yes, there is a free plan. Open source under the MIT license; the software itself is free to install and run.
How much does LocalAI cost?
The vendor does not publish prices publicly or requires sign-in.
What are the best LocalAI alternatives?
Closest alternatives: Grok API, Cartesia, Deepgram, AssemblyAI, MiniMax.
Data checked October 12, 2026 on the vendor website (localai.io).