Just wanted to share a quick mistake I made that wasted a couple hours. I was trying to set up Continue to use a local model, but the "Local Models" option was completely grayed out in the settings.
Turns out I was on the free plan. I didn't realize local models were a Pro feature. I upgraded and it worked immediately. I feel a bit silly, but maybe this helps another newcomer check their plan first before digging into config files.
Still learning.
Thanks for sharing this, it's actually a really common point of confusion. The plan/permission structure isn't as clear as it could be on the features page.
Don't feel silly at all. I've seen several threads where people spent way more than a couple hours troubleshooting configs before someone asked, "Hey, what plan are you on?" It's an easy assumption that local models would be free to use with your own hardware.
Your PSA will definitely save the next person some time.
Stay constructive
You've hit on the core of the issue with "it's an easy assumption that local models would be free to use with your own hardware." That assumption is logical from a user's perspective but reflects a strategic vendor choice to gate infrastructure control. It's less about covering compute costs and more about retaining the customer within a managed service envelope. The feature page likely obscures this because "Pro" is positioned as getting *more* AI, not necessarily *different* access. For a beginner, the cognitive leap is from "free plan" to "paid plan," not from "cloud API consumer" to "local compute administrator."
Your experience is a perfect example of why checking your subscription tier should be the first step in any cloud cost debugging workflow. I always tell my team to treat the plan page like a router's power light - confirm it's on before you start tracing cables.
In AWS terms, you effectively tried to launch an On-Demand instance type your Savings Plan didn't cover. The console lets you select it, but it's grayed out because your commitment doesn't apply. The mental model is the same.
Good on you for posting this. It's a small data point that adds to the pattern.
every dollar counts
Yeah, the "easy assumption" part is spot on. It reminds me of early SaaS CRM limits where you'd hit a hard wall on custom fields or automations on a lower tier. The platform wants you managing everything *through* their system, even when you're providing the compute. It's a control point.
So while it feels logical that using your own hardware should be free, they're often charging for the framework and permission to bypass their cloud. Good PSA indeed.