diff --git a/internal/start/start.go b/internal/start/start.go
index 9263a0b22..b382f50c4 100644
--- a/internal/start/start.go
+++ b/internal/start/start.go
@@ -843,6 +843,7 @@ EOF
 					"SUPABASE_ANON_KEY=" + utils.Config.Auth.AnonKey,
 					"SUPABASE_SERVICE_KEY=" + utils.Config.Auth.ServiceRoleKey,
 					"LOGFLARE_API_KEY=" + utils.Config.Analytics.ApiKey,
+					"OPENAI_KEY=" + utils.Config.Studio.OpenaiApiKey,
 					fmt.Sprintf("LOGFLARE_URL=http://%v:4000", utils.LogflareId),
 					fmt.Sprintf("NEXT_PUBLIC_ENABLE_LOGS=%v", utils.Config.Analytics.Enabled),
 					fmt.Sprintf("NEXT_ANALYTICS_BACKEND_PROVIDER=%v", utils.Config.Analytics.Backend),
diff --git a/internal/utils/config.go b/internal/utils/config.go
index 5e07dbbfa..177751696 100644
--- a/internal/utils/config.go
+++ b/internal/utils/config.go
@@ -213,7 +213,7 @@ var Config = config{
 }
 
 // We follow these rules when adding new config:
-//  1. Update init_config.toml with the new key, default value, and comments to explain usage.
+//  1. Update init_config.toml (and init_config.test.toml) with the new key, default value, and comments to explain usage.
 //  2. Update config struct with new field and toml tag (spelled in snake_case).
 //  3. Add custom field validations to LoadConfigFS function for eg. integer range checks.
 //
@@ -286,9 +286,10 @@ type (
 	}
 
 	studio struct {
-		Enabled bool   `toml:"enabled"`
-		Port    uint   `toml:"port"`
-		ApiUrl  string `toml:"api_url"`
+		Enabled      bool   `toml:"enabled"`
+		Port         uint   `toml:"port"`
+		ApiUrl       string `toml:"api_url"`
+		OpenaiApiKey string `toml:"openai_api_key"`
 	}
 
 	inbucket struct {
@@ -560,6 +561,7 @@ func LoadConfigFS(fsys afero.Fs) error {
 			if Config.Studio.Port == 0 {
 				return errors.New("Missing required field in config: studio.port")
 			}
+			Config.Studio.OpenaiApiKey, _ = maybeLoadEnv(Config.Studio.OpenaiApiKey)
 		}
 		// Validate email config
 		if Config.Inbucket.Enabled {
diff --git a/internal/utils/templates/init_config.test.toml b/internal/utils/templates/init_config.test.toml
index 086b34dd8..ecbde4918 100644
--- a/internal/utils/templates/init_config.test.toml
+++ b/internal/utils/templates/init_config.test.toml
@@ -49,6 +49,8 @@ enabled = true
 port = 54323
 # External URL of the API server that frontend connects to.
 api_url = "http://127.0.0.1"
+# OpenAI API Key to use for Supabase AI in the Supabase Studio.
+openai_api_key = "env(OPENAI_API_KEY)"
 
 # Email testing server. Emails sent with the local dev setup are not actually sent - rather, they
 # are monitored, and you can view the emails that would have been sent from the web interface.
diff --git a/internal/utils/templates/init_config.toml b/internal/utils/templates/init_config.toml
index 55ea84d62..dbbadd06c 100644
--- a/internal/utils/templates/init_config.toml
+++ b/internal/utils/templates/init_config.toml
@@ -49,6 +49,8 @@ enabled = true
 port = 54323
 # External URL of the API server that frontend connects to.
 api_url = "http://127.0.0.1"
+# OpenAI API Key to use for Supabase AI in the Supabase Studio.
+openai_api_key = "env(OPENAI_API_KEY)"
 
 # Email testing server. Emails sent with the local dev setup are not actually sent - rather, they
 # are monitored, and you can view the emails that would have been sent from the web interface.