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Every AI-assisted tool your team uses - coding agents, chatbots, workflow automations - sends data to someone else's server. Every prompt, every code snippet, every internal document. For many companies, that's fine. For others, it's a dealbreaker.
We've looked at a range of approaches - from pure cloud APIs to hybrid setups to fully self-hosted inference. What we found: the right answer depends heavily on the use case. This post describes one option we evaluated as a proof of concept: a local LLM endpoint running on Apple Silicon hardware. It's a good starting point for small teams, individual developers, or anyone who wants to experiment without a big upfront commitment. If your team is growing, agentic coding is becoming a core workflow, or you need something that several developers hammer simultaneously all day - this likely isn't your endpoint solution.
Cloud AI APIs are convenient. They're also:
None of this means cloud AI is bad. It means relying on it exclusively creates risks that are worth understanding.
When evaluating local inference hardware, most teams look at GPU servers first - understandably, since that's been the standard for a long time. But there are interesting alternatives worth considering. One of them is Apple Silicon, for an architectural reason that's relevant to LLM inference.
The Mac Mini with Apple Silicon (M-series) is interesting for this use case because of Apple's unified memory architecture: the CPU and GPU share the same RAM pool. For LLM inference, this matters - the model weights need to be accessible to the GPU, and on traditional hardware that means dedicated VRAM. On Apple Silicon, your 32GB of unified memory is your VRAM.
On our Mac Mini M4 with 32GB RAM running Ollama:
| Model | Size | Use Case |
|---|---|---|
| qwen2.5-coder:7b | 4.7 GB | Primary coding model - strong code generation and understanding |
| mistral:latest 7b | 4.4 GB | General purpose - Q&A, summarization, reasoning |
| gemma3:latest 4b | 3.3 GB | General purpose - fast and versatile |
| qwen2.5-coder:1.5b | 986 MB | Lightweight coding - fast completions, low memory |
All four models combined use under 14GB of disk space and fit comfortably in 32GB of unified memory. Even the larger 7B models produce output faster than you can read it.
Generally you could use even bigger models without any problems. The Mac Mini M4 with 32GB can easily handle models with up to 20B parameters (it can also handle models with more parameters like Qwen3 Coder 30B), as long as they are optimized for inference and fit within the memory constraints.
For serving models locally, there are several options - llama.cpp for low-level control, LM Studio for a GUI-driven experience, or running models directly via frameworks like vLLM. We evaluated a few of these and landed on Ollama for our setup - mainly because of how little friction it adds. If you want a deeper look at Ollama's latest features, we covered that in our Ollama 2025 updates post.
The key feature for this setup: Ollama exposes an OpenAI-compatible API at http://localhost:11434/v1. This means any tool that speaks the OpenAI API format - coding agents, IDE extensions, workflow automation platforms, custom scripts - can connect to your Mac Mini without modification.
The setup is straightforward: We install Ollama and pull a few models:
1# Install Ollama (macOS)
2curl -fsSL https://ollama.com/install.sh | sh
3
4# Pull models for different use cases
5ollama pull qwen2.5-coder:7b # Primary coding model
6ollama pull mistral:latest # General purpose
7ollama pull gemma3:latest # General purpose, fast
8ollama pull qwen2.5-coder:1.5b # Lightweight, fast coding
To serve on the network (not just localhost), we set the host binding:
1# In ~/.zshrc or as a launchd environment variable
2export OLLAMA_HOST=0.0.0.0
Then we restart Ollama, and it now listens on all interfaces at port 11434.
Setting OLLAMA_HOST=0.0.0.0 makes Ollama available on your local network. But you don't want it on the public internet - there's no authentication built in, and exposing an unauthenticated API endpoint is a security risk.
The approach we chose: a mesh VPN as a trusted perimeter. If a device is on the network, it has already authenticated. Specifically, Headscale - the open-source, self-hosted implementation of the Tailscale control server.
Security note: The VPN-as-perimeter approach works well for restricted environments and first steps. For production-closer setups, consider adding RBAC and TLS at the API level (e.g. via nginx or an API gateway) and granular Access Control Lists on the Tailscale/Headscale side.
Tailscale creates a peer-to-peer VPN (a "tailnet") using WireGuard encryption. Devices on the tailnet can reach each other directly, without port forwarding, firewall rules, or exposing services to the internet.
Headscale replaces Tailscale's cloud-based coordination server with one you host yourself. The coordination server handles device registration and key exchange - it never sees your actual traffic (that flows directly between devices via WireGuard).
The setup:
100.64.0.10)Now every team member can reach Ollama at http://100.64.0.10:11434 - encrypted, authenticated, and invisible to the public internet.
If self-hosting the coordination server sounds like more work than you want, Tailscale's cloud service is a perfectly valid alternative. It's free for personal use and reasonably priced for teams. The trade-off: device metadata (not traffic) passes through Tailscale's servers.
We use Headscale at Infralovers because we prefer full control over the coordination layer. But for smaller teams or quick setups, Tailscale's hosted option gets you running in minutes.
For our specific requirements, this setup brings the following advantages:
This isn't a silver bullet. Be clear-eyed about what you're getting:
For us, the takeaway is clear: it's not "local vs. cloud" but hybrid - local for routine, high-volume tasks where privacy and cost matter, cloud for cases where frontier model quality makes a real difference.
Whether this approach fits your team depends on your specific requirements - team size, usage patterns, compliance needs, and how much operational responsibility you want to take on. We see this setup as one option in the toolbox, not a universal solution.
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