This blog discussing the difference between a local LLM and a cloud LLM.

What is a Local LLM?

A local LLM is different to a cloud LLM. The main, and most obvious difference is that a local LLM is created and stored locally on a single computer. This ensures that the local LLM is private and secure, but compared to a cloud LLM a local LLM will be slower and not as powerful.

Here is a video explaining in simple terms what the difference is between a cloud LLM and a local LLM. This video also covers the strengths and weaknesses of each, plus possible uses of both types of LLMs, similar to how you might configure Google Gems for specific tasks.

The video transcript and slide show is shown below.

Transcription:

“hello and welcome to my simple explanation video discussing the difference between cloud LLMs and local LLMs [00:00]. So what is it?

A cloud LLM (for example, ChatGPT, Gemini, or Claude) is a powerful piece of software that is hosted on a company’s remote supercomputers and accessed only via the internet [00:07]. Whereas a local LLM (something like Llama on your laptop) is a local piece of software that is compressed and smaller that runs entirely on your personal computer’s processor and memory [00:19].

Cloud LLMs are built using very large models containing trillions of connections or parameters, giving it maximum knowledge and capability [00:28]. Whereas a local LLM uses smaller specialized models or data sets that fit on a consumer computer’s chip, having fewer connections, more like billions rather than trillions [00:35].

Cloud LLMs are extremely powerful and they offer the highest intelligence, speed, and accuracy, and they’re capable of solving the most complex problems like coding or detailed analysis [00:44]. Whereas local LLMs provide absolute data privacy because your information never leaves your device; also, there are no ongoing subscription costs [01:00].

There are weaknesses though: cloud LLM your data and conversations must be sent over the internet to the company’s servers, raising major privacy and security concerns [01:09]. Whereas for a local LLM, the output quality is less intelligent and slower than the cloud models due to the power limitations of your personal computer’s chip [01:16].

Cloud LLMs can be used for complex tasks like deep market research, advanced coding, creative content generation, or scientific data synthesis [01:24]. Whereas local LLMs can be used for highly sensitive tasks like analyzing proprietary company data, drafting confidential legal documents, or private note-taking [01:36].

If you do want an explanation of what an LLM is in more simple terms, please check out one of these two videos [01:50]. If not, please leave any questions or comments you have below. Thanks for your time, see you next time, bye [01:55].”

Here is the slide show the video was based on:

If you need a simple explanation of what an LLM is, please click here and here.