Lesson 04 Installing the tools
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Lesson 04 · Slide 1

Lesson 04 — Installing the tools

Four tools, from “no install needed” to “AI coding agent on your own machine.” Pick one, start today.

AI for Dummies Module 4

You don’t need all four. Pick the one that fits where you are right now. The rest will still be here when you’re ready.

By the end of this lesson you’ll have at least one tool installed and working — ready for Lesson 05 (prompting).

Lesson 04 · Slide 2

The four tools at a glance

💬
Claude.ai
Nothing to install
Works in any browser
🖥️
LM Studio
Desktop app
Offline & private
⌨️
Ollama
Terminal tool
Offline & scriptable
🤖
Claude Code
AI coding agent
Edits your real files
Claude.ai Cloud only LM Studio Local (GUI app) Ollama Local (terminal) Claude Code Local agent ← Cloud (no setup) More control →

Beginner path: Claude.ai first. Add the others only when you hit a task Chat can’t do on its own.

Lesson 04 · Slide 3

Hardware reality check — local AI only

Cloud AI (Claude.ai, Claude Code) runs on Anthropic’s servers — your machine specs don’t matter. Local AI (LM Studio & Ollama) runs on your RAM, so this matters:

8 GB RAM Small models (~3B params) Works, but slowly ~4–8 tokens/sec Good for: simple Q&A, short drafts Model: llama3.2:3b 16 GB RAM Mid models (7B–13B) Comfortable for everyday tasks ~8–20 tokens/sec Good for: writing, summaries, simple code Model: llama3.2 or mistral 32 GB+ RAM Large models (30B+) Smooth, near-cloud quality ~20+ tokens/sec Good for: anything, long docs, complex reasoning Model: llama3.1:70b (q4)
Apple Silicon Macs (M-series) and discrete GPUs roughly double these speeds. If your machine is modest, cloud AI is your friend — it runs on Anthropic’s hardware, not yours.
Lesson 04 · Slide 4

Tool 1 — Claude.ai — three steps to get started

 claude.ai — New conversation
Explain what a DNS record is in plain English.
A DNS record is like a phone book entry for the internet. It maps a human-readable domain name (like example.com) to the actual numeric IP address where the server lives.
Type a message…

Step 1: Go to claude.ai in any browser — Chrome, Firefox, Safari, Edge.

Step 2: Sign up with your email or a Google account. Takes under a minute.

Step 3: Start typing. That’s the entire setup.

Free tier is enough to learn on. Desktop & mobile apps available — same login, same experience.

Lesson 04 · Slide 5

Claude.ai plans — what you need

Free

  • Unlimited short conversations
  • Claude Sonnet (very capable)
  • Works on any device
  • No credit card needed
  • More than enough to learn on

Pro & Max (paid)

  • Higher usage limits
  • Access to Claude Opus (most capable)
  • Priority access during peak hours
  • Projects, extended context
  • Required for Claude Code

Recommendation: Start free. If you hit usage limits while doing real work, upgrade then — not before. The free tier handles learning perfectly.

Lesson 04 · Slide 6

Tool 2 — LM Studio — local AI with no terminal

The Discover tab — a built-in model browser:

● ● ●   LM Studio — Discover
Llama 3.2 (3B)
1.9 GB · Fits 8 GB RAM
Mistral 7B Instruct
4.1 GB · Fits 16 GB RAM
Llama 3.1 (70B q4)
38 GB · Needs 64 GB RAM

1. Download from lmstudio.ai — Mac, Windows, or Linux. Installs like any normal app.

2. Open the Discover tab. Find a 3B–8B model. Click Download.

3. Open Chat, load the model, start talking — fully offline.

Lesson 04 · Slide 7

LM Studio — install to first chat in 5 steps

1 2 3 4 5 lmstudio.ai Go to site, download installer (auto-detects OS) Install app Double-click the installer, click through prompts Open Discover Click the magnifying-glass icon in sidebar Download model Pick 3B–8B size, click Download, wait a few mins Start chatting Open Chat tab, load model, 100% offline

Bonus — local API server: LM Studio can serve a local API on port 1234 (OpenAI-compatible format). Apps that normally call a cloud API can point at your machine instead — zero cost, zero data leaving home. You don’t need this on day one; it’s there in Module 6.

Lesson 04 · Slide 8

LM Studio vs Ollama — which should you pick?

LM Studio

  • Point-and-click GUI — no terminal
  • Built-in model browser with size warnings
  • Visual chat interface just like Claude.ai
  • Local API server toggle (one click)
  • Best for: beginners, visual people, anyone who wants no command-line

Ollama

  • Tiny (~60 MB) — runs in the background
  • One-command install & model download
  • Scriptable: automate with a shell loop
  • Local API on port 11434 (OpenAI-compat.)
  • Best for: developers, servers, automation

The one-line rule: LM Studio is friendlier (clicks, no terminal). Ollama is leaner and better for scripting. Most beginners try LM Studio first, then discover Ollama when they want to automate something.

Lesson 04 · Slide 9

Tool 3 — Ollama — AI in your terminal

Install once, then run any open model with a single command. First run downloads the model (a few GB); after that it loads in seconds.

  Terminal
$ curl -fsSL https://ollama.com/install.sh | sh
  Installing ollama to /usr/local/bin… done.

$ ollama run llama3.2
  pulling manifest …
  pulling 6a0746a1ec1a: 100% ███████ 2.0 GB
  running model…

>>> What is a prompt?
  A prompt is the text you give to an AI to tell it what to do or ask. It can be a question, an instruction, or a piece of text to continue.

>>> /bye

Type /bye to exit. On Linux use the one-liner above. On Mac/Windows download from ollama.com/download.

Lesson 04 · Slide 10

Ollama — commands you’ll actually use

Memorize these four and you’ll cover 90% of what Ollama can do:

ollama run llama3.2        # download (first time) + start a chat
ollama list                # see every model you've downloaded
ollama pull mistral        # download a model without running it
ollama rm llama3.2         # delete a model to free up disk space
ollama serve               # run Ollama as a background API server

Popular starter models:
llama3.2 — Meta’s fast 3B model
mistral — Mistral 7B, excellent balance
phi3 — Microsoft’s small but smart model

Local API: Ollama automatically exposes an OpenAI-compatible API on port 11434. Your own scripts can call it just like the cloud API — free, no data leaving home. See Module 6.

Lesson 04 · Slide 11

Tool 4 — Claude Code — AI that acts, not just answers

Claude Code is a coding agent. You run it inside a project folder and describe what you want in plain English. It reads your files, writes or edits code, and runs commands on your behalf.

What it can do:

  • Read your entire project codebase
  • Write new files or edit existing ones
  • Run terminal commands and see output
  • Fix bugs you describe in plain English
  • Scaffold a new project from scratch

What you need first:

  • A paid Claude plan (Pro, Max, Team, or Enterprise)
  • — or — an Anthropic Console account with billing
  • macOS, Linux, or Windows (WSL)
  • ~4 GB RAM (very light)
The free Claude.ai tier does not include Claude Code. If you’re just starting out, set it aside and come back when you have a coding project to work on.
Lesson 04 · Slide 12

Claude Code — two install options

Option A — Native installer

Simplest. No extra software needed:

curl -fsSL https://claude.ai/install.sh | bash

Works on macOS and Linux out of the box.

Option B — Via npm

If you already have Node.js 18 or newer:

npm install -g @anthropic-ai/claude-code

On Windows: use inside WSL (Windows Subsystem for Linux).

After installing, cd into any project folder and type claude. It will open a browser window to authenticate on first run. That’s it — you’re running an AI coding agent.

Lesson 04 · Slide 13

Claude Code — one important rule before you start

Claude Code can edit real files and run real commands. It is not a chat window — it has actual access to your project on disk.

Do NOT start it on…

  • A production system or live website
  • A folder with files you haven’t backed up
  • Anything containing real credentials (.env)

DO start it on…

  • A test or sandbox folder
  • A project tracked by git (easy undo)
  • A fresh directory for a new project

Think of it as a junior developer you’re mentoring: talented, fast, but you review the work before it goes live. Read what it proposes before approving. More on agent safety in Module 9.

Lesson 04 · Slide 14

All four tools side by side

Tool Runs where Install? Privacy Best for
Claude.ai Anthropic’s cloud No Data sent to Anthropic Everyone, day one
LM Studio Your machine (GUI) App download Fully offline Private AI, no terminal
Ollama Your machine (CLI) Yes (one command) Fully offline Scripting, servers, devs
Claude Code Your machine + cloud Yes (curl or npm) Code sent to Anthropic Coding, multi-step tasks

All four install commands in one place: see the Install Commands Gallery in the Theory page — copy buttons included.

Lesson 04 · Slide 15

Pick your path — decision tree

Do you want local / private AI? No Claude.ai Browser → sign up → chat Yes Do you write / read code? No LM Studio GUI app → no terminal Yes Comfortable with terminal? No Claude Code AI coding agent (paid plan needed) Yes Ollama Terminal + scriptable Not sure?

Unsure about your situation? Use the Tool Picker Wizard in the Theory page — it asks 3 questions and gives you the exact install command.

Lesson 04 · Slide 16

A suggested 4-week path

Week 1 — Chat only. Use Claude.ai every day for real tasks. Learn what good output looks like. Practice asking — don’t install anything else yet.

Week 2 — Go local. Install LM Studio, download a 3B–8B model, have the same conversation you had on Claude.ai. Compare quality.

Week 3 — Touch the API. Run the Python example from Module 6. Process a small batch of something you actually care about.

Week 4 — Build one tiny thing. Pick a starter project from Module 8 and finish it.

You don’t need to rush. Each step works fine on its own. The later ones just unlock more. The single best thing you can do today: sign up for Claude.ai and use it for something real.

Lesson 04 · Slide 17

Recap — what you covered today

Four tools

  • Claude.ai — cloud, zero install, start here
  • LM Studio — local GUI app, offline & private
  • Ollama — local terminal tool, scriptable
  • Claude Code — AI coding agent, edits real files

Key install commands

# Ollama (Linux/WSL)
curl -fsSL https://ollama.com/install.sh | sh

# Claude Code
curl -fsSL https://claude.ai/install.sh | bash

# Or via npm
npm install -g @anthropic-ai/claude-code

Your homework

Install one tool. Use it for a real task. Take a screenshot for the homework check.

Lesson 05 →

Prompting — how to talk to AI well. The skill that improves your results more than any tool choice.

1 / ?