Popular open source AI developer tool Ollama raises $65M, grows to nearly 9M users

2026-07-09 · Source: AI News & Artificial Intelligence | TechCrunch · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Software Development & Engineering, Emerging Technologies & Innovation · Depth: Novice, long

Summary

Ollama, a popular open-source AI tool launched in 2023, has secured a \$65 million Series B funding round, bringing its total raised to \$88 million. The platform enables developers to run open-weight AI models on their personal computers within minutes and offers cloud access to larger models via subscription tiers ranging from free to \$100/month, tracking usage by GPU time. Co-founders Jeff Morgan and Michael Chiang, who previously developed Docker Desktop, designed Ollama to simplify AI model deployment, much like Docker did for cloud applications. The tool now serves over 8.9 million developers monthly, including 85% of Fortune 500 companies, with only 14 employees. While some users expressed "Enshittification" concerns regarding its cloud business, the company asserts its core desktop product remains free, and the cloud service addresses the need to run models too large for local machines. The company also highlights the growing trend of enterprises adopting open models to reduce inference expenses, positioning Ollama favorably in the open versus closed AI model debate.

Key takeaway

For AI Engineers and ML practitioners evaluating LLM deployment strategies, Ollama provides a compelling platform to run open-weight models locally or via its cost-effective cloud service. You can significantly reduce inference expenses and enhance data privacy by utilizing its Docker-like approach. Consider integrating Ollama to democratize access to powerful AI models within your team and build custom applications without subscription lock-in.

Key insights

Ollama simplifies running open-weight AI models locally and via cloud, mirroring Docker's impact on cloud application deployment.

Principles

• Open models significantly reduce enterprise AI inference costs.
• Local AI tools democratize access to powerful LLMs.
• Open source projects can attract substantial venture capital.

Method

Install Ollama, download desired LLM models, ask questions, and your local machine processes the request to provide an answer.

In practice

• Run LLMs offline for enhanced privacy and cost control.
• Summarize documents and generate code using local models.
• Build custom AI applications on your own hardware.

Topics

• Ollama
• Open-Source AI
• Local LLMs
• AI Inference
• Developer Tools
• Venture Capital

Code references

• ollama/ollama

Best for: Machine Learning Engineer, NLP Engineer, Investor, AI Engineer, AI Student, Director of AI/ML

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI News & Artificial Intelligence | TechCrunch.