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Local AI vs Cloud Services: A Real Cost Comparison

July 12, 2024 · 2 min read

With the rising costs of AI services like ChatGPT Plus ($20/month) and Claude Pro ($20/month), many users are looking for alternatives. Let’s break down the real costs of local AI versus cloud services and see why running AI locally might be the smarter financial choice.

The Cost of Cloud AI

Popular AI services typically charge:

  • ChatGPT Plus: $20/month ($240/year)
  • Claude Pro: $20/month ($240/year)
  • Anthropic API: ~$15/million tokens
  • OpenAI API: ~$20/million tokens

And these costs are just the beginning. Many services:

  • Require ongoing subscriptions
  • Have usage limits
  • Charge extra for features
  • Increase prices regularly

The One-Time Cost of Local AI

Local AI apps like Enclave offer a different model:

  • No subscriptions
  • No usage limits
  • Free model updates
  • No hidden costs

Breaking Down the Savings

Let’s compare over one year:

Cloud Services:

  • Monthly subscription: $20
  • Yearly total: $240
  • Two-year total: $480
  • Five-year total: $1,200

Local AI:

  • One-time app purchase
  • No ongoing costs
  • Unlimited usage
  • Free updates

The savings become significant over time, especially for regular users.

Hidden Costs of Cloud Services

Cloud AI users often face:

  • Price increases
  • Feature paywalls
  • Usage restrictions
  • Connection costs
  • Multiple subscriptions

Benefits Beyond Cost

Local AI’s financial advantages extend to:

  • No internet requirement
  • No data charges
  • No subscription tracking
  • No payment information stored
  • Complete usage freedom

Beyond saving money, local AI also protects your data — learn more about why privacy matters when using AI.

Professional Use Case

For businesses and professionals:

  • No per-seat licensing
  • No API usage fees
  • No token counting
  • Predictable costs
  • Unlimited team usage

Cost-Effective Features

Local AI provides:

  • Unlimited conversations
  • No rate limiting
  • Full feature access
  • Multiple AI personas
  • Custom configurations

Long-Term Value

Investment in local AI offers:

  • Perpetual usage rights
  • No recurring charges
  • Future model updates
  • Feature additions
  • Growing capabilities

Making the Switch

Moving to local AI is simple:

  1. Download a local AI app
  2. Pay once
  3. Use forever

Need help getting set up? Our beginner’s guide to local LLMs covers everything you need to know.

Real User Savings

Example scenarios:

Regular User:

  • Cloud AI: $240/year
  • Local AI: One-time purchase
  • First-year savings: Significant
  • Subsequent years: 100% savings

Power User:

  • Cloud AI with API: $500+/year
  • Local AI: One-time purchase
  • Unlimited usage
  • Maximum savings

Future-Proof Investment

Local AI advantages grow with:

  • Improved models
  • Better performance
  • New features
  • No price increases
  • Continued updates

Conclusion

The financial case for local AI is clear: a one-time investment provides unlimited access to powerful AI capabilities, without the burden of ongoing subscriptions or usage fees. With apps like Enclave AI, you’re not just saving money - you’re investing in a sustainable, private, and cost-effective AI solution.

Once you’ve made the switch, explore creative ways to use offline AI in your daily life.

Ready to stop paying monthly fees for AI? Try Enclave AI and experience the freedom of subscription-free artificial intelligence.