How to Run OpenClaw with Open-Source Models

Recent changes by Anthropic have made using their models with the OpenClaw assistant prohibitively expensive, prompting a search for more affordable alternatives. Open-source models like Kimi-K2.5 have emerged as powerful substitutes, offering performance nearly on par with top-tier options but at a fraction of the cost. While OpenAI's models were found to be "lazy," Kimi-K2.5 provides strong reasoning capabilities that make it a highly effective assistant. Although setup is straightforward, users may experience slower response times and must consider data compliance issues like GDPR when using non-self-hosted models.