Compare/LM Studio + Locally AI vs Mercury Coder Next Edit

AI tool comparison

LM Studio + Locally AI vs Mercury Coder Next Edit

Which one should you ship with? Here is the side-by-side panel verdict, pricing read, reviewer split, and community vote comparison.

L

Developer Tools

LM Studio + Locally AI

LM Studio buys the best iOS local LLM app to go cross-device

Ship

75%

Panel ship

Community

Free

Entry

LM Studio, the most popular desktop app for running local large language models, has acquired Locally AI — the leading iOS and iPadOS app for on-device inference on Apple Silicon. Locally AI's creator Adrien Grondin is joining LM Studio full-time to lead cross-device native AI experiences. The acquisition signals LM Studio's ambition to own the full local AI stack: macOS, Windows, Linux, and now iPhone and iPad. Locally AI was notable for its deep Apple Silicon integration, using Core ML and Metal Performance Shaders to run models like Llama 3 and Phi-3 natively on A-series and M-series chips. The app had a dedicated following among privacy-conscious users who wanted a clean iOS interface without compromising their data to cloud services. LM Studio brings a larger model library, server mode, and a more mature MLX/GGUF toolchain. For local AI enthusiasts, this is a consolidation play in a space that was starting to fragment across too many single-platform apps. A unified LM Studio experience across desktop and mobile would be a significant UX improvement. It also sets up an interesting competition with Apple's own on-device AI ambitions in iOS 19.

M

Coding Tools

Mercury Coder Next Edit

Sub-100ms next-edit prediction for VS Code and JetBrains — powered by diffusion LLMs

Mixed

50%

Panel ship

Community

Free

Entry

Inception Labs launched Next Edit inside the Continue extension, bringing Mercury Coder's diffusion-based architecture to VS Code and JetBrains. Unlike autoregressive autocomplete that generates left-to-right, Mercury predicts multi-line edits across your entire file simultaneously — deletions, additions, and structural changes at once. Common patterns it handles: converting callbacks to async/await, extracting functions, renaming variables across call sites, and squashing code smells. Latency is under 100ms so suggestions appear before you finish thinking. The diffusion architecture ($0.25/M input, $1/M output) is 5-10x faster than comparable autoregressive models. Available via Models Add-On in Continue.

Decision
LM Studio + Locally AI
Mercury Coder Next Edit
Panel verdict
Ship · 3 ship / 1 skip
Mixed · 2 ship / 2 skip
Community
No community votes yet
No community votes yet
Pricing
Free (LM Studio core); Locally AI previously $0 (donation-ware)
Models Add-On subscription required for Continue. API: $0.25/M input tokens, $1/M output tokens. Free tier available.
Best for
LM Studio buys the best iOS local LLM app to go cross-device
Sub-100ms next-edit prediction for VS Code and JetBrains — powered by diffusion LLMs
Category
Developer Tools
Coding Tools

Reviewer scorecard

Builder
80/100 · ship

This is the right move for LM Studio. The desktop client is already excellent and Locally AI's Core ML integration is the best iOS inference wrapper available. Combining Grondin's Apple-native work with LM Studio's model management and server mode could produce something genuinely special for local AI power users.

80/100 · ship

I've used next-edit features in other tools but the sub-100ms latency here is genuinely different — it's below my perception threshold, which means it doesn't break flow. The multi-line simultaneous edit understanding is real; it caught a refactor pattern I was about to manually do across 6 call sites.

Skeptic
45/100 · skip

Acquisitions in open-source adjacent tools often mean the indie app loses what made it great. Locally AI was clean and opinionated; LM Studio is powerful but has more surface area. There's real risk the mobile experience gets de-prioritized once the acquisition honeymoon ends.

45/100 · skip

The benchmarks are impressive but 'trained on real edit sequences' is doing a lot of work here. Until I see how it handles domain-specific refactors in large codebases with complex type hierarchies, I'm skeptical it beats Cursor's native next-edit on anything beyond textbook patterns.

Futurist
80/100 · ship

The race to own the local AI client layer is just beginning. LM Studio is positioning itself as the VLC of AI — runs everything, everywhere, free. If they nail the cross-device sync story (shared model library, shared chats), they become the default for privacy-first AI.

45/100 · hot

Diffusion LLMs applied to code editing is the most underrated architectural bet in AI tooling right now. Autoregressive generation was always the wrong primitive for editing — you don't write a diff token by token. Mercury's approach is structurally correct and the speed numbers suggest it scales without compromise.

Creator
80/100 · ship

Being able to run the same model on my MacBook and iPhone with the same interface is a genuine quality-of-life win. I use local models for confidential creative writing and the iOS gap has always been frustrating. This closes it.

80/100 · ship

Even for non-heavy-coders, the 'fix code smells' and 'rename across call sites' use cases are exactly the tedious tasks that make coding feel like work instead of creation. Sub-100ms means zero cognitive interrupt. This is the kind of AI assist that disappears into the background in a good way.

Weekly AI Tool Verdicts

Get the next comparison in your inbox

New AI tools ship daily. We compare them before you waste an afternoon.

Bookmarks

Loading bookmarks...

No bookmarks yet

Bookmark tools to save them for later

LM Studio + Locally AI vs Mercury Coder Next Edit: Which AI Tool Should You Ship? — Ship or Skip