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Artificial Intelligencedocker-ready1-click-deploypermissive-license100% FOSS🟢 Lightweight · ~256MB💾 Recommended storage: 10GB

LocalAI: Open Source alternative to OpenAI API in 2026

LocalAI exposes an API 100% compatible with OpenAI's (chat, images, embeddings, audio) but running open source models on your own infrastructure, with no external API keys.

ℹ️ The base image itself is small, but the models you download (GGUF/GGML) can add tens of GB on top — not included in this estimate. Runs on CPU; auto-detects and uses NVIDIA/AMD/Intel GPUs when available.

Alternative to OpenAI API
License MIT49.5k starsWebsite GitHub Repository

Audit Snapshot

View notes →

  • License — Matches GitHub

  • GitHub — Active

  • Latest release — v4.11.0 · 11 days ago

  • Docker Compose — Partial

  • Production — Not production-tested by AltFreeStack

LocalAI vs. OpenAI API

Pros

  • Near-direct migration from code already using the OpenAI API

Things to consider

  • Needs decent hardware (ideally a GPU) for large models

Quick Docker installation guide

Copy this docker-compose.yml, adjust the example passwords and run docker compose up -d on your server. See the full step-by-step guide →

💡 Official SaaS or self-hosted with AltFreeStack?

  • On the official cloud: a recurring monthly fee and usage limits on OpenAI API.
  • On your own VPS: 100% free software on your own server, with no artificial row, project or user limits.
docker-compose.yml
version: "3.9"
services:
  localai:
    image: localai/localai:v3.12.1
    restart: unless-stopped
    ports:
      - "8080:8080"
    volumes:
      - localai_models:/models
volumes:
  localai_models:

🚀 Deploy in 1 command

Recommended for beginners

Copy this single command and paste it into your freshly created VPS's console (Vultr, DigitalOcean...). It downloads the script, prints it to your screen so you can see exactly what it's about to do (never a blind direct pipe), and only then installs Docker if needed, writes the files with secrets already generated, and starts everything — no nano, no pasting code blocks.

curl -sSL ".../api/deploy?stack=localai" -o deploy.sh && cat deploy.sh && bash deploy.sh
See what this script does →

This docker-compose corresponds to an actively maintained project — last commit today.

This docker-compose not working for you? Report it on GitHub →

Technical profile

License
MIT
Category
Artificial Intelligence
Replaces
OpenAI API
Tech stack
GoC++

Under the hood

Database

None / File-based

Language

Go

Platforms

Web

Key features

  • API compatible with the OpenAI SDK
  • Chat, images, embeddings and audio
  • Runs GGUF, GGML and more model formats

Preview

LocalAI interface preview

Public image provided by LocalAI on its own website.

💾 Backups in 3 steps (Day 2)

As long as the ./data folder (the "volume" mapped into the container) exists on your server, your data survives any restart or container update — that's the only thing you need to back up.

1. Create a compressed backup on the server

tar -czvf backup-$(date +%F).tar.gz ./data

2. Download it to your computer

From your computer's terminal (not your server's):

scp root@YOUR_IP:~/app/backup-*.tar.gz ./

3. Restore in case of emergency

tar -xzvf backup-file.tar.gz
🌐 Connect your domain with free SSL

Step 1 — Set up the DNS

In your domain registrar's dashboard (Cloudflare, Namecheap, GoDaddy...), create a record:

Type
A
Name/Host
@ (root domain) or a subdomain, e.g. app
Content/Value
Your server's public IP

Wait 5 to 15 minutes for the record to propagate across the internet.

Step 2 — Automatic reverse proxy with Caddy

One single file, no Nginx config or manual certificates — Caddy issues and renews Let's Encrypt HTTPS on its own.

Create a file called Caddyfile:

yourdomain.com {
    reverse_proxy localhost:8080
}

Start Caddy with this command (pulls the image and runs it in the background):

docker run -d -p 80:80 -p 443:443 --name caddy --restart always -v $PWD/Caddyfile:/etc/caddy/Caddyfile -v caddy_data:/data caddy