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Ollama enables running open-source LLMs locally for privacy-focused applications, offline deployment, and cost-free inference.

Installation

Ollama support is included in the base installation:

Prerequisites

Install Ollama

Download and install Ollama: Start Ollama:

Pull Models

Download the models you’ll use:

Configuration

Environment Variables

.env

Basic Setup

Initialize Graphiti with Ollama:

Important Notes

Use OpenAIGenericClient

Always use OpenAIGenericClient for Ollama, not OpenAIClient:
Why OpenAIGenericClient?
  • Higher default max tokens (16K vs 8K)
  • Better compatibility with local models
  • Full structured output support
  • Optimized for OpenAI-compatible APIs

Ollama API Endpoint

Ollama provides an OpenAI-compatible API at:
This endpoint implements the OpenAI API format, enabling compatibility with OpenAI client libraries.

Language Models

  • deepseek-r1:7b (recommended): Fast reasoning model, 7B parameters
  • qwen2.5:7b: Strong general-purpose model
  • llama3.3:70b: High quality, requires more resources
  • gemma2:9b: Efficient Google model
  • mistral:7b: Fast and capable

Embedding Models

  • nomic-embed-text (recommended): 768 dimensions, excellent quality
  • mxbai-embed-large: 1024 dimensions, high quality
  • all-minilm: 384 dimensions, lightweight

Model Selection Guide

Configuration Options

LLM Client

Embedder

Complete Example

Structured Output Limitations

Local models may have challenges with structured outputs: Best Practices:
  • Use larger models (7B+) for better structured output adherence
  • Enable JSON mode in Ollama modelfile if available
  • Monitor extraction quality and adjust prompts if needed
  • Consider using quantized versions for faster inference

Performance Optimization

Hardware Acceleration

GPU Support:

Concurrency Control

Local models are slower than cloud APIs. Reduce concurrency:
.env

Model Optimization

  • Use Quantized Models: Faster inference, lower memory
  • Tune Context Length: Balance quality vs speed
  • Batch Requests: Process multiple items together

When to Use Ollama

Choose Ollama if you:
  • Need complete data privacy (no external API calls)
  • Want offline operation
  • Prefer zero API costs
  • Have capable local hardware (GPU recommended)
  • Need air-gapped deployment
Choose Cloud APIs if you:
  • Need the highest quality outputs
  • Want faster response times
  • Don’t have powerful local hardware
  • Need enterprise support and SLAs

Troubleshooting

Ollama Not Running

Model Not Found

Slow Performance

  • Use GPU: Ensure GPU acceleration is enabled
  • Reduce Concurrency: Set SEMAPHORE_LIMIT=1
  • Use Smaller Models: Try 7B instead of 70B
  • Quantization: Use quantized model variants

Out of Memory

  • Use Smaller Models: Switch to 7B or smaller
  • Increase Swap: Configure system swap space
  • Reduce Context: Lower max_tokens parameter