LEVEL 06 · LESSON 47
Ollama
Check where the chosen model actually runs, not just the name of the software you use.
What it is
Ollama is software for using supported models through local applications and APIs. Its ecosystem includes both locally run and cloud model options.
Why it matters
It can make a small local-model experiment easier to start, while the choice of model and deployment still determines the practical result.
A business example
A team prototypes an internal summarization workflow on a workstation with a locally running model. It verifies the actual request path before using private source material.
How it actually works
For a local setup, a model is downloaded and run using the machine’s available resources. An application sends requests through an interface and receives generated responses. Performance depends on the model and hardware. Cloud options have a different data path, so explicitly check the chosen configuration. A prototype also needs evaluation and operating controls before it becomes a shared business service.
A common misconception
Using Ollama does not by itself mean every request stays on your computer; that depends on the selected model and configuration.
ONE SENTENCE TO REMEMBER
Check where the chosen model actually runs, not just the name of the software you use.
CHECK YOUR UNDERSTANDING
A team uses Ollama for a prototype and tells legal that “all data stays on our laptops.” What should they verify?
Show the answer
Answer: B.
Ollama’s ecosystem includes both locally run and cloud model options. Using Ollama does not by itself mean every request stays on your computer; check where the chosen model actually runs.
Take it into your next meeting
What evidence would confirm that your prototype’s requests are processed locally?
Go to the source
Ollama documentation ↗Product references checked September 2026.One more concept, understood.
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