LM Studio Now Free for Commercial Use
LM Studio has updated its terms to allow free use in work and commercial settings, dropping the need for a commercial license. This move simplifies access for developers and teams using local LLMs. Enterprise features remain paid, but a new free Teams plan is coming soon. The update positions LM Studio as a more accessible tool for businesses scaling local AI workflows.
Element Labs, the team behind LM Studio, has lifted restrictions on using the desktop AI app for work. As of July 8, users can run LM Studio in commercial and workplace settings without needing a special license or registration. The change removes a significant adoption barrier for startups, SMBs, and developers integrating local language models into their daily workflows.
While the Enterprise tier continues to offer premium features like single sign-on, model-gating, and private artifact sharing, a new free Teams plan is scheduled to roll out later this month. This will allow internal sharing of prompts and outputs, targeting smaller teams that don't yet need full enterprise controls. Fortune 500 companies and research universities already use LM Studio Enterprise, signaling traction in institutional markets.
This update aligns with Element Labs’ broader mission to democratize local AI. By eliminating licensing friction, the company is doubling down on the open-source community and local-first AI practitioners. LM Studio now presents itself as a serious alternative for teams seeking flexibility and privacy while avoiding cloud dependencies.
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