LocalAI is a self-hosted, MIT-licensed stack that exposes an OpenAI-compatible REST API from your own hardware. Language model inference, image generation, audio, semantic search via LocalRecall, and autonomous agents via LocalAGI all run without a network call leaving your machine. The modular design pulls backends on demand, so you don't install inference engines you don't use. The wall appears at model selection and hardware sizing: you need at least 10GB of RAM and enough disk for the models you want to run, and the quality ceiling is set by what open-weight models can actually do. Teams needing GPT-4-class reasoning on constrained hardware eventually look elsewhere.