diff --git a/modules/common/services/desktop.nix b/modules/common/services/desktop.nix
index 580366be0..bd4b946b7 100644
--- a/modules/common/services/desktop.nix
+++ b/modules/common/services/desktop.nix
@@ -195,6 +195,13 @@ in
               icon = "${pkgs.losslesscut-bin}/share/icons/losslesscut.png";
             }
 
+            {
+              name = "Falcon AI";
+              description = "Your local large language model, developed by TII.";
+              path = "${pkgs.alpaca}/bin/alpaca";
+              icon = "${pkgs.ghaf-artwork}/icons/falcon-icon.svg";
+            }
+
             {
               name = "Shutdown";
               description = "Shutdown System";
diff --git a/modules/microvm/virtualization/microvm/common/storagevm.nix b/modules/microvm/virtualization/microvm/common/storagevm.nix
index c9a4ac7a3..3cb4621b3 100644
--- a/modules/microvm/virtualization/microvm/common/storagevm.nix
+++ b/modules/microvm/virtualization/microvm/common/storagevm.nix
@@ -20,7 +20,7 @@ in
       # FIXME: Probably will lead to disgraceful error messages, as we
       # put typechecking on nix impermanence option. But other,
       # proper, ways are much harder.
-      type = types.anything;
+      type = types.listOf types.anything;
       default = [ ];
       example = [
         "/var/lib/nixos"
@@ -51,7 +51,7 @@ in
     };
 
     files = mkOption {
-      type = types.anything;
+      type = types.listOf types.anything;
       default = [ ];
       example = [ "/etc/machine-id" ];
       description = ''
diff --git a/modules/microvm/virtualization/microvm/guivm.nix b/modules/microvm/virtualization/microvm/guivm.nix
index 4f6ae42ce..0e481d6e7 100644
--- a/modules/microvm/virtualization/microvm/guivm.nix
+++ b/modules/microvm/virtualization/microvm/guivm.nix
@@ -68,6 +68,14 @@ let
             storagevm = {
               enable = true;
               name = "guivm";
+              directories = [
+                {
+                  directory = "/var/lib/private/ollama";
+                  inherit (config.ghaf.users.accounts) user;
+                  group = "ollama";
+                  mode = "u=rwx,g=,o=";
+                }
+              ];
               users.${config.ghaf.users.accounts.user}.directories = [
                 ".cache"
                 ".config"
@@ -147,7 +155,7 @@ let
           microvm = {
             optimize.enable = false;
             vcpu = 2;
-            mem = 2048;
+            mem = 12288;
             hypervisor = "qemu";
             shares = [
               {
@@ -184,8 +192,11 @@ let
           imports = [
             ../../../common
             ../../../desktop
+            ../../../reference/services
           ];
 
+          ghaf.reference.services.ollama = true;
+
           # Waypipe service runs in the GUIVM and listens for incoming connections from AppVMs
           systemd.user.services.waypipe = {
             enable = true;
diff --git a/modules/reference/services/default.nix b/modules/reference/services/default.nix
index ecab9648a..9bed9dd94 100644
--- a/modules/reference/services/default.nix
+++ b/modules/reference/services/default.nix
@@ -11,11 +11,13 @@ in
     ./dendrite-pinecone/dendrite-pinecone.nix
     ./dendrite-pinecone/dendrite-config.nix
     ./proxy-server/3proxy-config.nix
+    ./ollama/ollama.nix
   ];
   options.ghaf.reference.services = {
-    enable = mkEnableOption "Enable the Ghaf reference services";
-    dendrite = mkEnableOption "Enable the dendrite-pinecone service";
+    enable = mkEnableOption "Ghaf reference services";
+    dendrite = mkEnableOption "dendrite-pinecone service";
     proxy-business = mkEnableOption "Enable the proxy server service";
+    ollama = mkEnableOption "ollama service";
   };
   config = mkIf cfg.enable {
     ghaf.reference.services = {
diff --git a/modules/reference/services/ollama/ollama.nix b/modules/reference/services/ollama/ollama.nix
new file mode 100644
index 000000000..1b42cf4a6
--- /dev/null
+++ b/modules/reference/services/ollama/ollama.nix
@@ -0,0 +1,105 @@
+# Copyright 2024 TII (SSRC) and the Ghaf contributors
+# SPDX-License-Identifier: Apache-2.0
+{
+  config,
+  lib,
+  pkgs,
+  ...
+}:
+let
+  cfg = config.ghaf.reference.services;
+  inherit (lib) mkIf;
+in
+{
+  config = mkIf cfg.ollama {
+    services.ollama = {
+      enable = true;
+      openFirewall = true;
+      host = "0.0.0.0";
+    };
+
+    environment.systemPackages = [
+      (pkgs.writeShellApplication {
+        name = "load-falcon";
+        runtimeInputs = with pkgs; [
+          libnotify
+          ollama
+        ];
+        text = ''
+          if [ "''${1:-}" == "--check" ]; then
+             if ollama show falcon2; then
+                echo "falcon2 model is installed"
+                exit 0
+             fi
+
+             if [ -f /tmp/falcon-download ]; then
+               if [ "$(cat /tmp/falcon-download)" == "1" ]; then
+                  echo "falcon2 model is currently being installed"
+                  exit 0
+               fi
+             fi
+
+             echo "falcon2 model is not installed"
+             exit 1
+          fi
+
+          function cleanup() {
+             echo 0 > /tmp/falcon-download
+          }
+
+          trap cleanup SIGINT
+
+          if ! ollama show falcon2; then
+             notify-send -i ${pkgs.ghaf-artwork}/icons/falcon-icon.svg 'Falcon AI' 'Downloading the latest falcon2 model. This may take a while...'
+             echo 1 > /tmp/falcon-download
+          else
+             echo "falcon2 model is already installed"
+             exit 0
+          fi
+
+          if ollama pull falcon2:latest; then
+            notify-send -i ${pkgs.ghaf-artwork}/icons/falcon-icon.svg 'Falcon AI' 'The falcon model has been downloaded successfully. You may now try it out!'
+          else
+            notify-send -i ${pkgs.ghaf-artwork}/icons/falcon-icon.svg 'Falcon AI' 'Failed to download the falcon model. Please try again later.'
+          fi
+
+          cleanup
+        '';
+      })
+    ];
+
+    # This forces Alpaca to use the systemd ollama daemon instead of spawning
+    # its own.
+    system.userActivationScripts.alpaca-configure = {
+      text = ''
+                source ${config.system.build.setEnvironment}
+                mkdir -p $HOME/.config/com.jeffser.Alpaca
+                cat <<EOF > $HOME/.config/com.jeffser.Alpaca/server.json
+        {
+              "remote_url": "http://localhost:11434",
+              "remote_bearer_token": "",
+              "run_remote": true,
+              "local_port": 11435,
+              "run_on_background": false,
+              "powersaver_warning": true,
+              "model_tweaks": {
+                    "temperature": 0.7,
+                    "seed": 0,
+                    "keep_alive": 5
+              },
+              "ollama_overrides": {},
+              "idle_timer": 0
+        }
+        EOF
+      '';
+    };
+
+    systemd.services.ollama = {
+      serviceConfig = {
+        TimeoutStartSec = "5h";
+        Restart = "always";
+        RestartSec = "5s";
+      };
+    };
+  };
+}