On-device endless text RPG game

I played some AI dungeon and I found it amazing, I enjoyed it a lot, how I can modify the story however I want and create my own scenarios. The problem is that it all depends on AI APIs, which means it’s not offline and you are limited in free play.

I am wondering if consumer hardware and AI models are good enough to make that with purely on device hardware, never calling anything that requires internet. And if yes is there any projects doing it now?

Thanks