diff --git a/apps/postgres-new/.env.example b/apps/postgres-new/.env.example
index af216d77..425deb9d 100644
--- a/apps/postgres-new/.env.example
+++ b/apps/postgres-new/.env.example
@@ -4,6 +4,10 @@ NEXT_PUBLIC_IS_PREVIEW=true
 
 OPENAI_API_KEY="<openai-api-key>"
 
+# Optional
+# OPENAI_API_BASE="<openai-compatible-api>"
+# OPENAI_MODEL="<model>"
+
 # Vercel KV (local Docker available)
 KV_REST_API_URL="http://localhost:8080"
 KV_REST_API_TOKEN="local_token"
diff --git a/apps/postgres-new/README.md b/apps/postgres-new/README.md
index 7b5cb23b..233348aa 100644
--- a/apps/postgres-new/README.md
+++ b/apps/postgres-new/README.md
@@ -13,9 +13,20 @@ Both databases are stored locally in the browser via IndexedDB. This means that
 
 Every PGlite instance runs in a Web Worker so that the main thread is not blocked.
 
+
 ## AI
 
-The AI component is powered by OpenAI's GPT-4o model. The project uses [Vercel's AI SDK ](https://sdk.vercel.ai/docs/introduction) to simplify message streams and tool calls.
+The AI component is powered by OpenAI's GPT-4o model by default. The project uses [Vercel's AI SDK](https://sdk.vercel.ai/docs/introduction) to simplify message streams and tool calls.
+
+### Environment Variables
+
+In addition to the required `OPENAI_API_KEY`, the following environment variables can be configured:
+
+- `OPENAI_API_BASE`: (Optional) The base URL for the OpenAI API. Defaults to `https://api.openai.com/v1`.
+- `OPENAI_MODEL`: (Optional) The model used by the AI component. Defaults to `gpt-4o-2024-08-06`.
+
+**NOTE**: The current prompts and tools are designed around the GPT-4o model. If you choose to use a different model, expect different behavior and results. Additionally, ensure that the model you select supports tool (function) call capabilities.
+
 
 ## Authentication
 
diff --git a/apps/postgres-new/app/api/chat/route.ts b/apps/postgres-new/app/api/chat/route.ts
index 4a1371c1..b81e4af5 100644
--- a/apps/postgres-new/app/api/chat/route.ts
+++ b/apps/postgres-new/app/api/chat/route.ts
@@ -1,4 +1,4 @@
-import { openai } from '@ai-sdk/openai'
+import { createOpenAI } from '@ai-sdk/openai'
 import { Ratelimit } from '@upstash/ratelimit'
 import { kv } from '@vercel/kv'
 import { ToolInvocation, convertToCoreMessages, streamText } from 'ai'
@@ -27,6 +27,15 @@ type Message = {
   toolInvocations?: (ToolInvocation & { result: any })[]
 }
 
+const chatModel = process.env.OPENAI_MODEL ?? 'gpt-4o-2024-08-06'
+
+// Configure OpenAI client with custom base URL
+const openai = createOpenAI({
+  apiKey: process.env.OPENAI_API_KEY,
+  baseURL: process.env.OPENAI_API_BASE ?? 'https://api.openai.com/v1',
+  compatibility: 'strict',
+})
+
 export async function POST(req: Request) {
   const supabase = createClient()
 
@@ -82,7 +91,7 @@ export async function POST(req: Request) {
 
       When importing CSVs try to solve the problem yourself (eg. use a generic text column, then refine)
       vs. asking the user to change the CSV. No need to select rows after importing.
-      
+
       You also know math. All math equations and expressions must be written in KaTex and must be wrapped in double dollar \`$$\`:
         - Inline: $$\\sqrt{26}$$
         - Multiline:
@@ -94,7 +103,7 @@ export async function POST(req: Request) {
 
       Feel free to suggest corrections for suspected typos.
     `,
-    model: openai('gpt-4o-2024-08-06'),
+    model: openai(chatModel),
     messages: convertToCoreMessages(trimmedMessageContext),
     tools: convertToCoreTools(tools),
     async onFinish({ usage }) {