LocalAI is a self-hosted, open-source alternative to OpenAI that can run on consumer-grade hardware. It supports local or on-premises text, audio, and image generation. It provides text generation capabilities like GPT, as well as support for text-to-speech, image generation, and more. Due to its open-source, self-hosted nature, users can freely customize and deploy it without being restricted by cloud APIs, making it suitable for users with demands for data privacy and security. LocalAI aims to provide powerful AI generation capabilities to individuals or organizations seeking autonomous control and independence from third-party services.