Foundry Local vs LM Studio

Foundry Local

The SDK and its native runtime are MIT, at 2.1.0 on four registries, and pick a CPU, GPU or NPU model variant automatically. The optional local server has no credential, its current routes aren't in the published REST reference, and telemetry is on by default with an opt-out.

LM Studio

OpenAI-compatible chat completions, responses, completions and embeddings, Anthropic-compatible /v1/messages and a native /api/v1, all on one port. Authentication is off by default, so any local process can call the server.

Foundry Local

1. Read the server URL from manager.urls[0] or foundry server status. The port is dynamic unless the owner sets web.urls or foundry server start --port
2. Send the model ID that GET /v1/models returns, not the alias. The alias resolves to a hardware-specific variant
3. Check supportsToolCalling before sending tools. Support differs by variant, and issue #1183 reports Qwen tool calling failing on QNN
4. Set your own request timeout. Inference has no built-in one, and cancellation takes effect only after the current generation step
5. Ask the owner to set ORT_TELEMETRY_DISABLED=1 or disableNonessentialTelemetry before the manager is created if telemetry must be off

LM Studio

1. Send Authorization: Bearer $LM_API_TOKEN when the owner gives you a token. With Require Authentication on, every request needs it
2. Pass previous_response_id to /api/v1/chat instead of resending the history, and store: false for one-off calls
3. List models with GET /api/v1/models before naming one. A named model that's downloaded loads just in time
4. Install the Python SDK pre-release (1.6.0b1) and pass api_token directly. It reads LMSTUDIO_API_TOKEN, not the LM_API_TOKEN the docs name
5. Set allowed_tools on every MCP integration. Without it the model sees every tool on the server