diff --git a/v2/ollama/ollama.go b/v2/ollama/ollama.go
index 586e6a0..9c04130 100644
--- a/v2/ollama/ollama.go
+++ b/v2/ollama/ollama.go
@@ -1,36 +1,22 @@
-// Package ollama implements the go-llm v2 provider interface for Ollama
-// (https://ollama.com), a local model runner that exposes an OpenAI Chat
-// Completions-compatible endpoint. No API key is required; capability depends
-// on whichever model the user has pulled locally, so Rules are intentionally
-// empty — we trust the local user.
+// Package ollama implements the go-llm v2 provider interface for Ollama,
+// targeting Ollama's native /api/chat endpoint. Supports both local Ollama
+// instances (no API key) and Ollama Cloud (https://ollama.com, requires an
+// API key sent as a Bearer token).
 package ollama
 
-import (
-	"gitea.stevedudenhoeffer.com/steve/go-llm/v2/openaicompat"
-)
-
-// DefaultBaseURL points at a local Ollama instance with default port. Kept
-// for the openaicompat-based shim; callers should migrate to
-// DefaultLocalBaseURL (no /v1 suffix) which targets the native /api/chat
-// endpoint.
-const DefaultBaseURL = "http://localhost:11434/v1"
-
-// shimNew is the legacy openaicompat-based constructor, retained until the
-// native provider's Complete/Stream are fully implemented (Task 4 replaces
-// the public New() with a native-backed constructor).
-func shimNew(apiKey, baseURL string) *openaicompat.Provider {
-	if baseURL == "" {
-		baseURL = DefaultBaseURL
-	}
-	return openaicompat.New(apiKey, baseURL, openaicompat.Rules{})
-}
-
-// New creates a new Ollama provider. An empty baseURL uses DefaultBaseURL.
-// Ollama ignores the API key; callers may pass "".
+// New creates a new Ollama provider over the native /api/chat API. An empty
+// apiKey means local-mode (no Authorization header is sent). A non-empty
+// apiKey is sent as `Authorization: Bearer <key>` for Ollama Cloud.
 //
-// Note: this constructor currently still routes through the openaicompat
-// shim. Subsequent commits replace the body with a native /api/chat
-// implementation backed by the Provider type in native.go.
-func New(apiKey, baseURL string) *openaicompat.Provider {
-	return shimNew(apiKey, baseURL)
+// An empty baseURL defaults to DefaultLocalBaseURL when apiKey is empty, or
+// DefaultCloudBaseURL when apiKey is set.
+func New(apiKey, baseURL string) *Provider {
+	if baseURL == "" {
+		if apiKey == "" {
+			baseURL = DefaultLocalBaseURL
+		} else {
+			baseURL = DefaultCloudBaseURL
+		}
+	}
+	return newNative(apiKey, baseURL)
 }
diff --git a/v2/ollama/ollama_test.go b/v2/ollama/ollama_test.go
index 5c1e216..cb2c267 100644
--- a/v2/ollama/ollama_test.go
+++ b/v2/ollama/ollama_test.go
@@ -1,13 +1,35 @@
-package ollama_test
+package ollama
 
-import (
-	"testing"
+import "testing"
 
-	"gitea.stevedudenhoeffer.com/steve/go-llm/v2/ollama"
-)
+func TestNew(t *testing.T) {
+	t.Run("local mode picks default local URL", func(t *testing.T) {
+		p := New("", "")
+		if p == nil {
+			t.Fatal("New returned nil")
+		}
+		if p.baseURL != DefaultLocalBaseURL {
+			t.Errorf("baseURL: want %q, got %q", DefaultLocalBaseURL, p.baseURL)
+		}
+		if p.apiKey != "" {
+			t.Errorf("apiKey: want empty, got %q", p.apiKey)
+		}
+	})
 
-func TestNew_NoKeyNeeded(t *testing.T) {
-	if p := ollama.New("", ""); p == nil {
-		t.Fatal("New returned nil")
-	}
+	t.Run("cloud mode (apiKey set) picks cloud URL", func(t *testing.T) {
+		p := New("test-key", "")
+		if p.baseURL != DefaultCloudBaseURL {
+			t.Errorf("baseURL: want %q, got %q", DefaultCloudBaseURL, p.baseURL)
+		}
+		if p.apiKey != "test-key" {
+			t.Errorf("apiKey: want %q, got %q", "test-key", p.apiKey)
+		}
+	})
+
+	t.Run("explicit baseURL is preserved", func(t *testing.T) {
+		p := New("k", "http://example.test:9999")
+		if p.baseURL != "http://example.test:9999" {
+			t.Errorf("baseURL not preserved, got %q", p.baseURL)
+		}
+	})
 }
diff --git a/v2/registry.go b/v2/registry.go
index 58ea1f5..4ba4db3 100644
--- a/v2/registry.go
+++ b/v2/registry.go
@@ -129,7 +129,7 @@ var providerRegistry = []ProviderInfo{
 		Name:        "ollama",
 		DisplayName: "Ollama (local)",
 		EnvKey:      "", // no key needed
-		DefaultURL:  ollama.DefaultBaseURL,
+		DefaultURL:  ollama.DefaultLocalBaseURL,
 		Models: []string{
 			"llama3.2", "llama3.1", "qwen2.5", "mistral", "gemma2", "phi4",
 		},