Yes, it runs a quantized [1] version of the model locally. This version uses low-precision data types to represent reduced weights and activations (8-bit integer instead of 32-bit). The specific model published by Ollama uses 4-bit quantization [2] and that's why it is able to run on MacBook pro.
If you want to try it out, this blog post[3] shows how to do it step by step - pretty straightforward.
[1] https://huggingface.co/docs/optimum/concept_guides/quantizat...