Running Claude Code Locally with Ollama and Open-Source Models as a Free Alternative to the Anthropic API
Claude Code's API costs add up fast for heavy users, often $50 to $200+/month on Opus 4.5/4.6. Ollama (v0.14.0+) now supports the Anthropic Messages API natively, which means Claude Code can run against local open-source models at zero cost, with no data leaving the machine.
This guide covers the full setup: installing Ollama and Claude Code, choosing a model that fits 16 GB of RAM, connecting the pieces, and understanding the real tradeoffs.