add local model support: Ollama, LM Studio, OpenAI via litellm proxy

README.md

@@ -49,7 +49,32 @@ export ANTHROPIC_API_KEY=your-key
 node cli.js
 ```
 
-> **Note:** Claude Code uses the Anthropic Messages API format. It does not support OpenAI-compatible endpoints (Ollama, LM Studio, etc.) directly — you would need an API format translator proxy like [litellm](https://github.com/BerriAI/litellm) in front.
+### With Local Models (Ollama, LM Studio)
+
+Claude Code uses the Anthropic Messages API format. To use local models, run [litellm](https://github.com/BerriAI/litellm) as a translation proxy:
+
+```bash
+# Terminal 1: Start litellm proxy
+pip install litellm
+litellm --model ollama/llama3.1:8b --port 8080
+
+# Terminal 2: Point Claude Code at the proxy
+export ANTHROPIC_BASE_URL=http://localhost:8080
+export ANTHROPIC_API_KEY=not-needed
+node cli.js
+```
+
+Works with any model Ollama supports — llama3.1, codellama, deepseek-coder, mistral, etc.
+
+### With OpenAI / GPT Models
+
+```bash
+# Via litellm proxy
+litellm --model openai/gpt-4o --port 8080
+
+# Or any OpenAI-compatible endpoint (Codex, GPT-5.4, etc.)
+litellm --model openai/o3 --port 8080
+```
 
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