Running Coding AI Agent Locally
Wednesday, March 4, 2026
I was wondering if there's a decent AI agent that helped with coding but can be run locally. After a quick test, I managed to get it to work with the following stack:
- Ollama
- DeepSeek Coder
- Continue VS Code Extension
- VS Code
To set it up, I follow the steps below:
- First, I install Ollama on my machine using winget:
winget install Ollama.Ollama. - Then, download DeepSeek Coder to run in Ollama. https://ollama.com/library/. In my case, I just use the smallest model which is 1.3b paramaters:
ollama run deepseek-coder:1.3b. - Next, I search for and install "Continue" VS Code extension by continue.dev.
- To configure the extension, make sure Ollama is running on http://localhost:11434. If it's not, run
ollama serve. - In my case, the "Continue" extension was unable to detect Ollama. I had to setup the configuration to autodetect. To do that, I open the Configs menu of the extension. Click the setting/gear icon next to Local Config and paste the following config:
name: Local Config
version: 1.0.0
schema: v1
models:
- name: Autodetect
provider: ollama
model: AUTODETECT
roles:
- chat
- edit
- apply
- rerank
- autocomplete
Then, the LLM works locally, but it will use a lot of CPU and memory.