Run Free Local AI in VS Code! (Ollama, Kilo Code & Continue)

Want zero API costs, total privacy, and fast AI coding right on your local hardware? In this video, we'll set up Ollama as a local AI engine on a Mac and integrate it directly into VS Code! 📌 What You'll Learn: Ollama Setup: How to install Ollama, pull models (Gemma 3, Qwen 2.5 Coder), and run basic CLI commands. Kilo Code Integration: Connecting Ollama via OpenAI-compatible API for side-by-side local AI coding and file editing. Tool Calling Gotcha: Why tool/function calling support matters for VS Code extensions and how to fix errors. Lightning-Fast Autocomplete: Setting up the Continue extension with small, low-latency models for instant code completions. Workflow Strategy: Using free open-source models as your daily driver for repetitive code while saving paid tokens for complex tasks. ⏱️ Timestamps 0:00 - Introduction: Local LLMs on MacBook Pro 0:22 - What is Ollama? (Privacy & Zero Token Costs) 0:48 - Ollama Installation & CLI Commands 1:14 - Pulling & Testing Gemma 3 1:26 - VS Code Integration with Kilo Code 2:13 - Fixing Tool Calling / Function Errors 2:37 - Lightning Fast AI Autocomplete using Continue & Qwen 2.5 Coder