Day 3 · Friday3 hours

Privacy, Self-Hosting & Capstone

Protect yourself, own your AI, and ship your project.

By the end of this session you can

  • Explain what an API key is and how leaks happen — and store secrets safely.
  • Decide what you should never paste into a public chatbot, and why.
  • Run a model fully offline on your own laptop with Ollama or LM Studio.
  • Weigh local vs. cloud trade-offs and manage token cost.
  • Ship and present your capstone, and give structured peer feedback.

Topic 1

The dangers of API-key and credential leaks

What a key is, how it leaks, and how to store secrets so it never happens to you.

  • How leaks happen: screenshots, public repos, shared configs.
  • The financial and security fallout of a leaked key.
  • Safe storage: environment variables, secret managers, and never in chat.

Topic 2

The dangers of centralized AI data collection

Who sees your prompts, and what you should never paste into a public chatbot.

  • How conversations may be used for training — and the settings that matter.
  • Redaction habits and safe defaults for sensitive data.

Topic 3

How to self-host AI models

Running a capable model on your own hardware, fully offline.

  • Ollama and LM Studio as easy local runners.
  • GPU vs. CPU, and quantization for smaller memory.
  • Choosing a model your hardware can actually run.

Topic 4

Private and decentralized AI

The movement toward user-owned, private inference.

  • Morpheus AI and decentralized inference.
  • Local vs. cloud trade-offs: privacy and control vs. power and convenience.

Topic 5

Cost management and staying current

Keeping the bill predictable and your skills fresh after the class.

  • Token pricing, subscriptions vs. pay-as-you-go, and avoiding surprise bills.
  • Where AI is heading — agents, on-device AI, open-weight parity — and how to keep learning.

Practice

Friday is protect-yourself-then-ship day. Run a model fully offline, do your personal AI security audit, then finish and present your capstone.

Hands-on lab

Offline model + AI security audit

  1. 1Run a model fully offline on your own laptop and chat with it — no cloud.
  2. 2Do a personal AI security audit: find where your keys/secrets live.
  3. 3Lock them down and set the privacy toggles on your accounts.
Peer exercise

Capstone peer evaluation

  1. 1Score each capstone against the shared rubric (1–5 per criterion).
  2. 2Give one written strength and one written suggestion per project.
  3. 3Close with a feedback circle: one breakthrough, one struggle, one next step.
Essay· One page, post-class

My personal AI playbook

  1. 1Write the tools, habits, and privacy rules you are keeping after the class.