What is describing is a local llm running what they call a rag system.
“Running a local LLM with a Retrieval-Augmented Generation (RAG) system gives you the power of AI without relying on the cloud. You keep full control of your data, run queries securely and privately, and enhance the model with your own knowledge base in real time. It’s fast, customizable, and cost-efficient—perfect for teams or individuals who want AI that works with their information, not just what the model was trained on.”