How to run your coding assist locally

Chat quota reached

Well, the month is still young, but I already ran out of free tokens for my favorite LLM service. So I decided to run a local instance of an open-source LLM on my machine.

What could possibly go wrong?

With a few free tokens left, I let AI guide me through the process.

First try: Ollama

Getting Started with Ollama

Wrap-up and check if "Ollama is running":

curl http://localhost:11434

Connect with Continue

Continue - Ship faster with Continuous AI

Ok, so let's follow: Using Ollama with Continue: A Developer's Guide

npm install -g @continuedev/cli

Check Recommended Models for best performance.

VS Code installation

Let's tune the selection a bit as suggested in What Are the Best Practices for Ollama / Ollama (Local Models):

For code generations:

ollama pull qwen3-coder:30b

This results in the following config .continue/config.yaml:

name: Local Config
version: 1.0.0
schema: v1
models:
  # https://hub.continue.dev/ollama/gpt-oss-20b?view=config
  - name: gpt-oss-20b
    provider: ollama
    model: gpt-oss:20b
    roles:
      - apply
      - chat
      - edit
    capabilities:
      - tool_use
  # https://hub.continue.dev/ollama/qwen3-coder-30b?view=config
  - name: qwen3-coder-30b
    provider: ollama
    model: qwen3-coder:30b
    roles:
      - apply
      - chat
      - edit
    capabilities:
      - tool_use
  # https://hub.continue.dev/ollama/llama3.1-8b?view=config
  - name: llama3.1-8b
    provider: ollama
    model: llama3.1:8b
    roles:
      - apply
      - autocomplete
      - chat
      - edit
  # https://hub.continue.dev/ollama/nomic-embed-text-latest?view=config
  - name: nomic-embed-text-latest
    provider: ollama
    model: nomic-embed-text:latest
    roles:
      - embed
continue config set model llama3.1-8b

How To Run an Open-Source LLM on Your Personal Computer

Sample project setup

Once Ollama and continue are installed, you can kick off the project with the continue CLI:

Please create both the AGENTS.md file and the .continue/rules/review.md file using the Write tool after analyzing the repository.
Focus on providing actionable information that would help both AI agents and human developers understand and work effectively with this codebase.
Keep the files concise but informational.

While not 100% right on the first run: ...the generated AGENTS.md contains a reference to a non-existing file CONTRIBUTING.md.

Despite this small issue, working with Continue and Ollama was a great start to get experience and a feeling for how local models can enrich the development.

While inside the editor of my choice I could , , forever now, ...be aware of the impulse to let the AI write code and documentation for you.