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Local vs. Cloud LLMs
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| Factor | Local LLMs | Cloud LLMs | |
|---|---|---|---|
| Privacy | Data stays on your network | Trust the provider | |
| Capability ceiling | Limited by your hardware | State-of-the-art available | |
| Latency (small tasks) | Often faster, no network | Network round-trip | |
| Latency (complex tasks) | Often much slower | Optimized infrastructure | |
| Cost model | High fixed, low marginal | Low fixed, scales with use | |
| Maintenance | Your responsibility | Provider's responsibility | |
| Context window (practical) | Usually 4K-32K usable | 100K+ available |
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