How to Run DeepSeek Locally for FREE: Stop Paying for ChatGPT API

Developer running local AI model DeepSeek in terminal on laptop screen VS Code

Every developer has two nightmares: Cloud Bills and Data Privacy.

In my previous analysis of the AI War, I talked about how DeepSeek shook the world with its low cost. Today, I am going to show you how to take that "Low Cost" to "Zero Cost".

Yes, you can run DeepSeek-V3 (and the coding model) directly on your laptop. No internet required. No API fees. Total privacy.

Why Run Locally?

  • Privacy: Your code never leaves your machine. Perfect for client projects.
  • Cost: Free forever. You only pay for electricity.
  • Offline Mode: Code on a flight or in a remote village without Wi-Fi.

Step 1: Install Ollama

The easiest way to run local models in 2026 is a tool called Ollama. It wraps complex LLMs into a simple executable.

Go to ollama.com and download the installer for Windows/Mac.

Step 2: Pull the DeepSeek Model

Open your Terminal (or PowerShell) and type this magic command:

ollama run deepseek-coder

Depending on your internet speed, it will download the model (approx 4GB to 8GB). Once done, you will see a chat prompt right in your terminal.

Step 3: Connect to VS Code (The Fun Part)

Running in a terminal is cool, but we want it in our editor.

  1. Install the "Continue" extension in VS Code.
  2. In settings, change the "Provider" to Ollama.
  3. Select DeepSeek-Coder as your model.

Boom! You now have a free AI pair programmer inside VS Code.

⚠️ System Requirements

Don't try this on a potato. You need at least:

  • RAM: 16GB is recommended (8GB works but might be slow).
  • GPU: NVIDIA RTX helps, but modern CPUs can handle the smaller models.

Verdict

Is it better than ChatGPT-4o? For general knowledge, maybe not. But for Coding? It is surprisingly close, and infinitely cheaper.

Are you Team Cloud ☁️ or Team Local? Drop a comment below!