Capfolder · Help · AI

Connect Ollama or LM Studio

Capfolder can use a free AI that runs on your own computer. You don't pay for it, and your cap table never leaves your laptop. This takes about 5 minutes.

Don't have Ollama or LM Studio yet? Do Install a local AI first, then come back here.

Orange boxes mark what to look at or click. Click a screenshot to enlarge it.

1. Make sure your local AI is running

Ollama: open the Ollama app. It runs quietly in the background (look for the llama icon in your Mac's menu bar or the Windows system tray).
LM Studio: open LM Studio, go to the Developer tab and switch the server on, so it says Running. (LM Studio's guide)

2. Open Settings in Capfolder

Click Settings at the top. Or, in your Get started list, click Set up AI. Then scroll to the AI box.

The Capfolder cap table screen with the Settings tab and the Set up AI button marked. — Either button takes you to the same place.

3. Check what Capfolder found

Capfolder looks for Ollama and LM Studio on your computer by itself. Under AI in use, it tells you what it found.

The AI settings box: Ollama and LM Studio both say Not running, with a Look again button. — **Not running** means the app isn't open. Go back to step 1, then click **Look again**.

The AI settings box: Ollama is running, but no model is downloaded yet. — **Running, but no model is downloaded yet** means you still need a model. Download one with Install a local AI, then click **Look again**.

4. Pick your model

When Capfolder says models on this computer, open the AI in use menu and pick one. Models on your computer end in (this computer).

The AI in use menu set to Ollama gemma4:e2b (this computer), and Ollama showing 2 models on this computer. — Leave **Use AI when sorting documents** ticked if you want the AI to read and file the PDFs you drop in.

5. Try it

Click ✦ Ask AI at the top (or press ⌘K on a Mac, Ctrl+K on Windows) and type: What needs my attention?

The AI only suggests. Anything it drafts opens for you to check, and nothing is saved until you click yes.

Not working?

It still says "Not running": Close and reopen Ollama or LM Studio, then click Look again. Capfolder looks in the usual place (port 11434 for Ollama, 1234 for LM Studio). If you changed that, change it back.
Answers are slow: Pick a smaller model. A small one (around 2–8B) is plenty for Capfolder.
I'd rather use Claude, ChatGPT or Gemini: Pick it in AI in use and paste your own API key. It's kept in your computer's keychain. A cloud AI sees cap-table numbers and names, and reads your documents only if you turn on Let cloud AI read documents.

Words used here

Local AI: An app that runs an AI on your own computer, instead of on a company's servers.
Model: The AI's "brain": a big file you download once. Smaller models are faster; bigger ones are smarter.

Stuck? Book a call or tell us on GitHub. Capfolder isn't legal advice: check your documents with a lawyer.