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The rise of homelabs: Running your own AI server at home

In the battle between Amazon Web Services and Google Cloud, a quiet contender is silently encroaching on the battlefield. The homelab, a computing space previously reserved for the closet or garage, is now beginning to be a larger part of people’s homes and small offices. 

In my early years as a budding software engineer in the 1990s, I would often take home expired or junked office computers, quietly assembling Frankenstein’s file server. Stacks of cords, cables, and components confused my friends who would often ask why I was hoarding so much computer equipment.

The simple answer was that I loved to build private home versions of the servers I helped maintain at work. But now, an even bigger draw is pulling even non-technical people into running their own private server. 

One of the biggest current drivers for homelabs is the development of open source easily accessible machine learning algorithms. Specifically, large language models (LLMs). What was once reserved for Universities and research labs can now be run on simple hardware quickly and easily using open software. Even I have let go of my Frankenstein File Server in favour of smaller, lower-wattage single board computers that take up less space and power in my own homelab. 

How can I start my own AI homelab?

Through my journey setting up my own personal LLM, let me share the top five things you need to know in order to get started with running your own private homelab LLM.

Docker

Once a mysterious tool used by backend engineers for development and testing, Docker containers are now the backbone for beginners looking to quickly launch a machine learning application quickly and easily. A Docker container is simply a shrink wrapped package of all the software you need to run an application.

If a chef, menu, vegetables, and noodles are everything you need to make a stir fry, the Docker container version would be all these things in a box, with a simple command to start the fire, cut the vegetables, and cook the meal. 

For example, you can run your own private LLM using Docker by typing this Docker command:

docker run -d -v ollama:/root/.ollama -p 11434:11434 –name ollama ollama/ollama

Ollama

As we saw with the previous recommendation, Docker allows us to install Ollama with a single command prompt. But what does Ollama do? And why have over 5 million people downloaded it? Large Language Models come in many sizes, and using different models can be confusing to set up and configure.

Also Read: Securing tomorrow’s metaverse today: Why safety in the new frontier must leverage on hardware

Ollama provides a common interface for communicating to these LLMs using a simple application programming interface (API). This means software can be developed that “plugs into” Ollama to provide functionality, decoupled from the LLM itself. For example you can use the Ollama API in your own Jupyter Notebook to send natural language prompts to your own LLM. 

Jupyter Notebook

Almost half of all Data Scientists use Jupyter Notebooks, for good reason. Notebooks provide an easy way to both see and comment on code, and plenty of examples exist on how to use machine learning algorithms in python code, as shareable Notebooks. With a Notebook, you can easily plug into OpenAI’s ChatGPT API, for a fee.

However, if you run your own API, as shown in the above example with Ollama, you can send LLM prompts to your own homelab for privately and for free. A Notebook can be a very hands-on “learning” approach to running your own private homelab LLM. However, a more hands-off approach is also available. 

Open WebUI

If you have no interest in learning data science but just want to run your own large language model on your own private network, with minimal tinkering, Open WebUI provides an entirely self-hosted AI interface that works seamlessly with Ollama, and plenty of other LLM API services (including OpenAI’s ChatGPT).

Similarly to Ollama, the easiest way to run Open WebUI is through Docker. Once it is running, you can see the local address on your home network, and it looks and functions very similarly to OpenAI’s ChatGPT service. You even have the choice of uploading your own documents and running prompts against the text inside them.

A healthy community of developers is constantly updating functionality and features in this software in the open source community. This means you are free to download, use, and contribute as much as you like, for free. 

Single board computer

Any new modern computer can be used to run a Large Language Model, though these models run in different sizes and the computer you have may only be able to run a smaller sized one.

Also Read: Why building user communities is far better than paid advertising

The top three things that will influence how well a system fits into your homelab are the following:

  • How much power does the computer consume? If you run a powerful computer running a 800+ watt power supply, be prepared for equally large sized power bills. There’s a reason many AI companies are looking into using Nuclear Power – these computers are typically very hungry for electricity and this can translate to high operating costs. Keep this in mind when you are weighing pros and cons for a big system.
  • How much RAM does the computer have? Even the lowest end LLMs require at least 8GB of RAM. Some can operate with 4GB but performance will be very poor. Ideally, a system should have a lot of RAM, with 8GB minimal and 16GB substantially better. Even more will allow access to larger models. 
  • Some kind of acceleration helps. This could be a GPU, NPU, or TPU. Though, to keep things simple, the best option is to find the fastest CPU within your Power (see 1.) and financial budget. In my experience, configuring machine learning algorithms to fully take advantage of acceleration is a very technical topic outside the scope of what is defined here. But if you like to spend time “tuning” your hardware to run as fast as possible, this could be a great project you can sink many hours into.

Conclusion 

Though, no matter which direction you eventually take, many options are available to customise your homelab with an increasing number of consumer centric devices. The Raspberry Pi is one of the most popular computers for homelab enthusiasts, with a low cost, low wattage, and 8GB options. The Jetson Orin is a GPU enabled single board computer, also with 8GB options though more expensive. The RapidAnalysis Darius is a low cost, low wattage Intel-based single board computer which also has an 8GB option. 

The cheapest and most accessible option is the computer you have with you at home right now. Though, most people will not want to run memory-hungry software continuously on a machine they are doing serious work on. Much like getting on a crowded runway, applications fighting for takeoff on a PC that sits right next to you, whirring its fans like a jetliner, can become annoying quickly. But there is another option. 

With so many computers heading for the junkyard daily, a little time in the “lab” can resurrect old machines into new workstations. Often, computers that struggle with Microsoft Windows are perfectly capable at running a single application in a cluster of homelab Docker containers.

For example, you can run Ollama on one e-waste machine, OpenWebUI on another separate e-waste machine, and Jupyter Notebook on a third e-waste machine, for a fully integrated homelab server cluster, and access them via a web interface locally. If you have the space, time, and patience (much like I did as a young engineer) you could slowly assemble a capable homelab using e-waste and commercially expired parts. 

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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Echelon Philippines 2024: Wai Hong Fong on StoreHub’s bold bet on the Philippines

Is the Philippines the Most Underrated Market in Southeast Asia? Storehub’s Bold Bet on Its Future

At Echelon Philippines 2024, Wai Hong Fong, Chieftain and Co-Founder of StoreHub, joined Judge Calimbahin III of Endeavor Philippines for a fireside chat titled ‘Is the Philippines the Most Underrated Market in Southeast Asia? StoreHub’s Bold Bet on Its Future’. The discussion explored StoreHub’s decision to prioritise the Philippines as a key market in its Southeast Asian strategy.

Fong shared that, compared to Indonesia, the Philippines offers significant untapped potential for growth. With over 17,000 stores served across Southeast Asia, StoreHub identified the Philippines as having the lowest cost per lead and the highest willingness to pay, positioning it as a highly promising market. Despite early challenges such as bureaucratic hurdles and the necessity for a local presence, the Philippines has now become StoreHub’s fastest-growing market.

Also Read: Echelon Philippines 2024: Sabrina Tan on Lhoopa’s mission to make housing accessible

He emphasised the importance of understanding the culture and spending time in the country to build a strong foundation for business success. Fong also highlighted the evolving infrastructure in the Philippines, which supports greater opportunities for growth.

The fireside chat underscored the need for entrepreneurs to adopt a countercultural mindset and a strong hunger for success to thrive in this market. StoreHub’s bold bet on the Philippines illustrates the untapped potential in what Fong described as one of Southeast Asia’s most underrated markets, with strong prospects for growth and innovation.

Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.

Missed Echelon Philippines this year? You can now catch the recorded sessions on demand, showcasing insights from leading startup experts, visionary entrepreneurs, and forward-thinking investors from the Philippines and Southeast Asia, all geared toward driving the next phase of growth. And stay tuned—more videos are coming soon!

Watch Echelon Philippines and ECX here.

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Startup governance and how it can make or break the business

Singapore is one of the leading startup hubs in Asia and the world. The ease of setting up a business with friendly tax rates for medium-sized companies at 21 per cent has made Singapore one of the best business environments globally.

However, despite strong government support through initiatives and grants, and a robust business landscape that many international companies choose as their headquarters in Asia, 30 per cent of Singaporean startups fail within two to five years and only 25 per cent of new companies survive the 15-year mark.

With the advantages Singaporean startups enjoy, why are we not seeing a higher degree of success? I firmly believe that startup governance is the key foundation that all startups should have, and it determines the success and longevity of the business and opens up the possibilities to play on a bigger scale. 

Global and economic factors and the perceptions of startups

From 2015 to 2021, tech startups were all the rage for investors wanting to come in to make a killing. Sentiments were bullish, together with a climate of low interest rates, and a pandemic tech boom alongside the $2 trillion stimulus in that period, funding was abundant. 

Between February 2022 and the end of 2023, interest rates were hiked 11 times, resulting in baseline interest rates going up tenfold making capital more expensive to borrow.   

The startup space matured, and valuations became more realistic with tightened purse strings led to a sharp decline in funding. Investors got savvier and were not batting for moonshots, they were looking for profitability, rather than the race for scalability.

The quick rise and sharp decline in startup investment is a big factor.

Bad actors and mismanagement

Cautionary tales with companies such as WeWork which was valued at US$47 billion at its peak in 2019 before declaring bankruptcy in 2023. Amidst mismanaged funds and a lavish lifestyle from Co-founder and CEO Adam Neumann, who walked away with a sizeable payout while investors were left high and dry.

A similar story with Joel Sng who was Co-Founder and CEO of Honestbee who treated company funds as his own, siphoning money through multiple shell companies leading to his declaration of bankruptcy while staff and vendors were left high and dry.

Also Read: Reviving a failing startup: Financial strategies for long-term success

Upon reflection, the transgressions were not one-off events, and without oversight and accountability, they spiralled out of control.

Accountability and accounting

Lean, agile, and adaptive. These are qualities that startups are attributed with as the advantages they have over larger corporations which are seen to move and make decisions “slower”. 

Investments in startups are different from SMEs or MNCs and sometimes lack structure or regulations in favour of flexibility and speed for growth.

In our experience with startup governance, financial and statutory compliances are some of the most commonly overlooked items, as many startups try to do their accounting reports to save costs. This oftentimes results in mistakes that can cause their valuations to drop when they seek loans or investments down the line. 

Do not leave this to chance — engage professional accounting firms and service providers.

Legal agreements between founders have to be inked and agreed upon. Clearly stating the responsibilities and consequences in the event of disputes between founders and investors makes dealings fair and transparent. This can also prevent lawsuits from customers and partners.

Though some founders find this uncomfortable and a chore, engaging professional lawyers to get these agreements in place grants peace of mind and clarity.

Startup governance ensures that the management’s values, ethics, and business practices align with, and lead to their financial goals.

Startup governance makes the business attractive for prospective investors

Startups that are serious and have their house in order make themselves attractive for investments to come in across all stages. 

For new startups, angel investors looking at pre-seed or seed funding can go in confidently, while startups that are further in their journey can readily welcome institutional investors or venture capitalist firms. 

The further a startup is in its journey, the more due diligence will be required on both the business and potential investors or partners. As startups scale their stages of funding, so do the controls needed to protect the parties involved. Due diligence must also be a two-way street, with startups doing their due diligence before welcoming anyone to the fold, as some scammers pose as potential partners or investors

Also Read: The power of financial models for startups: A guide for founders and VCs

No matter the stage of the startup, having financial and legal frameworks in place makes the steps towards and after funding clearer.

Startup governance keeps the best interests of the business as the North Star   

When startups are in their early stages, the core team and founders can suffice to sustain and grow. This, however, might change as the business scales up. 

From our experience seeing many startups through their journey, some founders are great until they are not. Having the vision to start a business, and running it when it reaches a certain scale are not mutually inclusive skill sets. Successful founders know their strengths and know what they should outsource.

A good CEO should be equipped with business and administrative skillsets, and have a good grasp of various subjects outside of the business that are needed to run the business. Subjects such as accounting, law and regulations give context to the decisions needed to steer the business to success.

In some cases, despite history and sentimentality, roles have to be abdicated, and responsibilities shift. With good startup governance, these transitions can be handled with minimal interruption to the business, providing transparency for these shifts, while making adjustments and maintaining fair compensation.

Startup governance bridges the gap between startups with private and public entities

Public listed companies, MNCs and non-profit organisations have corporate governance in place as a staple modus operandi to keep their operations running smoothly.

Startups who aim to play on the big stage need to run a tight ship with startup governance as a core pillar of their business. With good governance, the founders, investors, and partners involved can speak the same language and work together towards the same direction, regardless if they are private or public entities.

It is through consistent effort that irregularities and deviations from what is best for the business can be adjusted. I believe that in the future for startups, startup governance will be the base requirement for any startup that wants to be in business.  

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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