What does "Running locally" mean?

[stenci]

I have followed the directions on the readme for "running locally", but I don't know what I have done.

I have asked "what llm are you and are you running locally or on the cloud?" and I got the answer "I am based on OpenAI's GPT-3 model, and I operate in the cloud. I do not run locally on your machine or environment."

Is the answer correct?
If yes, then what is running locally?
And how can it work if I didn't provide an API key for it to work?

Edit
One additional question: how do I get gradlew runIde to run PyCharm instead of running IntelliJ Idea?