VS Code Claude Extension vs Terminal with Ollama - Why the Terminal Route Wins
VS Code Claude Extension vs Terminal with Ollama
The VS Code Claude extension is polished. It integrates nicely with your editor, offers inline suggestions, and handles common coding tasks well. But it's locked to Anthropic's API. Every request costs tokens. Every session requires internet. And you're limited to what the extension exposes.
The Terminal Route
Running Claude Code from the terminal - or pairing it with Ollama for local model access - is where the real power lives. Here's what you gain:
Full model flexibility. You're not locked to a single provider. Use Claude for complex reasoning, switch to a local Llama model via Ollama for routine tasks, or mix models based on what each task needs.
No API costs for simple work. Most coding tasks - generating boilerplate, writing tests, refactoring simple functions - don't need a frontier model. A local 7B or 13B model handles these fine. Save your API budget for the hard problems.
Deeper system access. Terminal-based agents can interact with your entire system - file operations, git commands, build tools, deployment scripts. The VS Code extension operates within the editor's sandbox.
Setting Up Ollama Locally
The setup is straightforward:
- Install Ollama on your Mac
- Pull a coding model -
ollama pull codellamaorollama pull deepseek-coder - Point your terminal AI tool at the local endpoint
- Use it for everyday coding tasks
Apple Silicon makes local models practical. A MacBook Pro with 32GB RAM runs 13B parameter models at reasonable speed. Good enough for code completion, test generation, and simple refactoring.
When to Use Each
Use the VS Code extension when you want quick inline help and don't mind the API cost. Use the terminal with Ollama when you need full system control, want to avoid API charges, or need to work offline.
The best setup is both - the extension for quick editor tasks, the terminal for everything else.
Fazm is an open source macOS AI agent. Open source on GitHub.