Beyond ChatGPT: Self-Hosted AI for Your Business

Most businesses see AI as a product: you buy a subscription to ChatGPT, and you get a chatbot. The open-source AI ecosystem is different. It is a toolkit. You choose the model, the interface, the data sources, and the integrations. You run it on your hardware, under your policies, with your data. Here is a map of the ecosystem and what each piece does.

The AI Inference Layer: Ollama

Ollama is the easiest way to run AI models on your own hardware. One command downloads and runs any of hundreds of open-source models. It handles model management, GPU acceleration, and a REST API that other tools connect to. Think of Ollama as the engine. You do not interact with it directly most of the time. Other tools connect to it via its API.

Ollama runs on Linux, macOS, and Windows. It supports CPU-only inference for smaller models and GPU acceleration via CUDA for larger ones. A single Ollama instance can serve multiple users and multiple applications simultaneously.

The Chat Interface: Open WebUI

Open WebUI is the ChatGPT-like interface your team actually uses. It connects to Ollama (or any OpenAI-compatible API) and provides a familiar chat experience with conversation history, model switching, and document upload for RAG. It includes multi-user support with admin controls, usage analytics, and the ability to create custom AI agents with specific instructions and knowledge bases.

Open WebUI spent 2024 becoming the most popular self-hosted AI interface. With 148,000 GitHub stars as of 2026, it is the de facto standard. If you deploy one AI tool for your team, this is it.

The Automation Layer: n8n AI Nodes

n8n connects your AI to your business applications. It has native nodes for Ollama and OpenAI-compatible APIs, meaning every n8n workflow can call an AI model for reasoning, classification, or generation. This is where AI stops being a chatbot and starts being infrastructure: an email arrives, the AI classifies it, and n8n routes it to the right team. A document is uploaded, the AI extracts key data, and n8n updates your CRM. No human in the loop for the routine parts. A human reviews the output and makes the decision.

n8n is self-hosted, free, and has no per-task pricing. The combination of n8n plus Ollama means you can build AI automations that run thousands of times per day at zero marginal cost.

The Search and Knowledge Layer: RAG with AnythingLLM or Open WebUI

RAG (Retrieval Augmented Generation) is the technology that lets AI answer questions based on your documents rather than its training data. You upload your documents (PDFs, Word files, web pages), the system indexes them, and when you ask a question, the AI searches the documents for relevant passages and uses them to generate an answer with citations.

Open WebUI includes built-in RAG. Point it at a folder of documents, and your team can query them conversationally. AnythingLLM is a dedicated RAG tool that supports multiple document formats, multiple AI providers, and custom embedding models for better search accuracy. It is simpler than Open WebUI for pure document Q&A use cases and can be deployed alongside Open WebUI for teams that want a dedicated knowledge base interface separate from their general chat.

The Agent Framework: Open WebUI Plugins and Tools

AI agents are models that can use tools: search the web, query a database, send an email, or run code. Open WebUI supports plugins and tools that give models these capabilities. A model configured with the web search tool can look up current information to answer questions about recent events. A model with the database query tool can answer questions about your sales data by running SQL queries. A model with the email tool can draft and send emails with human approval.

These capabilities are still maturing. AI agents make mistakes, take unexpected actions, and sometimes get stuck in loops. For now, agents should operate with human approval gates for any action that affects the real world (sending email, updating records, processing payments). The agent proposes an action. A human approves it. This pattern gives you the productivity benefit of automation without the risk of unsupervised AI actions.

What You Do Not Need: LangChain and LlamaIndex

LangChain and LlamaIndex are developer frameworks for building AI applications. They are powerful but require Python programming. For a business that wants to use AI, not build AI infrastructure, these frameworks are overkill. Open WebUI, n8n, and Ollama provide a no-code AI stack that covers 90 percent of business use cases without writing a single line of code. If you have developers on your team who want to build custom AI applications, LangChain and LlamaIndex are excellent. If you do not, you do not need them.

Putting It All Together

A complete self-hosted AI stack for a small business:

Total cost: hardware only. Every tool in the stack is open source and free. There are no per-user fees, no API call charges, and no token limits. Your data stays on your hardware. Your AI capabilities grow with your hardware, not with your SaaS budget.

VPS1 deploys the complete open-source AI stack for your business. Ollama, Open WebUI, n8n AI nodes, and RAG document indexing. We handle the setup. Your team uses the tools. Your data stays yours.