The blog post states:

We build the AI Assistant using a flexible, solution-independent approach which gives you a choice between multiple large language models (LLM) and services. It can be fully hosted within your instance, processing all requests in-house, or powered by an external service.

So it sounds like you pick what works for you. I’d guess on a raspberry pi, on board processing would be both slow and poor quality, but I’ll probably give it a go anyway.