Our verdict: LM Studio is the better choice for most people, especially on a Mac, because its model browser shows what fits your memory. Ollama is the better choice for developers: it runs in the background, it's open source and it's the default backend that coding tools and agents plug into.
If you want to run AI on your own computer, you'll end up choosing between the same two free apps almost everyone uses: Ollama and LM Studio. Both download open models like Qwen, Gemma and gpt-oss and run them fully offline. Where they differ is who they're built for.
Ollama
LM Studio
Ollama vs LM Studio by the numbers
Both apps changed a lot in 2026. Ollama raised $88 million in July and now runs Apple's MLX engine on Macs. LM Studio added a server-only mode in January and launched Bionic, an agent app built on its engine, in July.
The 2 apps at a glance
LM Studio- Model browser with memory estimates
- MLX and Splash engines on Apple Silicon
- Side-by-side chats to compare models
The catch: closed source, and background mode takes setup.
Ollama- Open source (MIT), starts at login
- OpenAI- and Anthropic-compatible API
- One command downloads and runs a model
The catch: assumes you know which model you want.
Prices and versions
Prices checked October 23, 2026, on each project's own site.
| Ollama | LM Studio | |
|---|---|---|
| Running models locally | Free | Free |
| Optional cloud plans | Pro $20/mo, Max $100/mo | Bionic+ $20/mo, Pro $100/mo |
| License | Open source (MIT) | Closed source |
| Latest version | 0.40.10 (Oct 23, 2026) | 0.4.26 (Oct 13, 2026) |
| Interface | Terminal plus a simple chat app | Full desktop app |
| Finding models | ollama pull from Ollama's library | Hugging Face browser with memory estimates per version |
| Apple Silicon engine | MLX | MLX, plus Splash for two Qwen models |
| Local API port | 11434 | 1234 |
What each one can do
| Feature | Ollama | LM Studio |
|---|---|---|
| Free to run locally | ✓ | ✓ |
| Open source | ✓ | ✗ |
| Model browser with memory estimates | ✗ | ✓ |
| Starts in the background at login | ✓ | Needs setup |
| OpenAI-compatible API | ✓ | ✓ |
| Anthropic-compatible API | ✓ | ✓ |
| Apple MLX engine | ✓ | ✓ |
| Server mode without the app | ✓ | ✓ |
| Side-by-side model chats | – | ✓ |
| Optional cloud models | ✓ | ✓ |
– means the company hasn't said.
Speed: closer than it used to be
Most speed comparisons online are out of date, because both apps changed so much this year.
- Mac, big models: in a March 2026 test on an M4 Pro Mac mini running Qwen3-Coder 30B, LM Studio generated 102 tokens per second to Ollama's 70. Ollama has since moved to MLX on Apple Silicon, so expect a much smaller gap now.
- Mac, same small model: a tie. A July 2026 test on an M2 Max with Qwen3 4B had both at about 67 tokens per second, though LM Studio answered first in 26 milliseconds against 162.
- NVIDIA graphics cards: Ollama is usually 10 to 20% faster thanks to lower overhead.
LM Studio's newest trick is Splash, an Apple Silicon engine from Inco AI tuned for Qwen3.8 27B and Qwen3.6 35B-A3B. It needs an M3 or newer Mac with at least 36GB of memory. For everyone else, speed shouldn't decide this.
Ollama: built for developers
Ollama was built to be infrastructure. It starts at login, sits in the background and exposes a local API in both OpenAI's and Anthropic's formats, so Claude Code and most agent frameworks plug straight in. One command, ollama run qwen3.8, downloads and runs a model.
It's open source under the MIT license and usually quick to support new models. The catch: its chat app is basic and assumes you know which model you want, so many people pair it with a separate chat app.
LM Studio: easiest for everyone else
LM Studio's best feature is its model browser. Search for a model and it lists every version with its size and whether it fits your memory, then downloads it in one click. You can run two chats side by side to compare models and tune context length and other settings.
It closed much of the developer gap in January with llmster, a server-only version that runs without the app, and its API works with the same tools as Ollama's. But it isn't open source, which matters to some teams.
Which model should you run?
Either app runs the same models. Our pick is Qwen3.8 27B if you have 24 to 32GB of memory, or gpt-oss-20b or Gemma 4 12B on a 16GB laptop. Details are in Best Free Local LLM 2026 and Best LLM by RAM, or check your machine with our RAM calculator.
What about Jan and LM Studio Bionic?
Jan is the third popular option: a simple, ChatGPT-style app that runs fully offline. It's the easiest for complete beginners, but it has fewer controls than LM Studio and a thinner API than Ollama.
LM Studio Bionic is LM Studio's agent app for coding and document work, launched in July. It runs local models on LM Studio's engine and adds optional US-hosted cloud models, free to start or $20 a month for Bionic+.
Which one should you use?
The verdict
Install LM Studio if you want to use local AI, and Ollama if you want to build with it. Both are free, both work offline and they run happily side by side, so there's no wrong first choice.
FAQ
Is Ollama or LM Studio better?
LM Studio is better for most people because it's a full app with a model browser that shows what fits your computer's memory. Ollama is better for developers because it runs in the background, is open source and offers a local API that coding tools and agents support.
Is LM Studio faster than Ollama?
On Macs with larger models, LM Studio has often been faster thanks to Apple's MLX engine, though Ollama now uses MLX too. With identical small models, speeds are nearly the same. On NVIDIA graphics cards, Ollama is usually 10 to 20% faster.
Are Ollama and LM Studio free?
Yes, both are free to run on your own computer. Ollama is open source under the MIT license, and LM Studio is free but closed source. Both also sell optional cloud plans from $20 a month.
Can I use Ollama and LM Studio together?
Yes. They use different ports (Ollama 11434, LM Studio 1234), so both can run on the same computer. Many people use LM Studio to find and test models and Ollama to serve them to other apps.
Do Ollama and LM Studio work offline?
Yes. After you download a model, both run it entirely on your computer with no internet connection, and your prompts and files never leave your machine.