Yes, that is the whole point. With a local Ollama your prompts, chat messages, and any cell data you include go only to your own computer, where the model runs. No cloud AI ever sees them, and neither do we. The only thing the add-in ever sends us is a license check when you enter a Pro key.
One honest caveat: if you deliberately point XLlama at a remote Ollama server or pick one of Ollama’s cloud models, your prompts go to that server. On a normal local setup, nothing leaves your machine.
