Nate Herk | AI Automation

This Stealth Model Makes Claude Code Free. Here's How.

Aug 21, 2026 14 min
claude codeopenrouterai agents
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Summary

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The video demonstrates how to use free, third-party AI models with the Claude Code CLI by configuring OpenRouter as an API proxy. It explains how to modify Claude Code's settings to route requests through OpenRouter and discusses the pros and cons of using these free models compared to official Claude or GPT models.

This tutorial provides a step-by-step guide for running Claude Code using free, alternative AI models available through OpenRouter. The process involves creating an OpenRouter account, generating an API key, and updating the local '.claude/settings.local.json' file within a project. The creator highlights the ability to experiment with new models like 'Ox Alpha' without direct costs. However, he provides an honest assessment, noting that these free models often lead to performance degradation, increased error rates like 'upstream idle timeout exceeded,' and slower execution times compared to official models. The video concludes with examples of the creator using the setup to perform real-world knowledge work and data analysis, demonstrating that while these free models are suitable for simpler tasks, they can be overmatched by complex, agentic workflows.

Steps to follow

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Key Points

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Worth watching if: You want to reduce your AI API costs for light development tasks and knowledge work, and are comfortable troubleshooting potential timeouts and performance issues when using third-party model proxies.

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