diff --git a/extensions/cli/spec/onboarding.md b/extensions/cli/spec/onboarding.md
index 58c65132292..1a38ef5c0ea 100644
--- a/extensions/cli/spec/onboarding.md
+++ b/extensions/cli/spec/onboarding.md
@@ -10,7 +10,6 @@ When a user first runs `cn` in interactive mode, they will be taken through "onb
 2. If the CONTINUE_USE_BEDROCK environment variable is set to "1", automatically use AWS Bedrock configuration and skip interactive prompts
 3. Present the user with available options:
 
-   - Log in with Continue: log them in, which will automatically create their assistant and then we can load the first assistant from the first org
    - Enter your Anthropic API key: let them enter the key, and then either create a ~/.continue/config.yaml with the following contents OR update the existing config.yaml to add the model
 
    ```yaml
@@ -19,9 +18,24 @@ When a user first runs `cn` in interactive mode, they will be taken through "onb
    schema: v1
 
    models:
-     - uses: anthropic/claude-4-sonnet
-       with:
-         ANTHROPIC_API_KEY: <THEIR_ANTHROPIC_API_KEY>
+     - name: claude sonnet 4.6
+       provider: anthropic
+       model: claude-sonnet-4-6
+       apiKey: <THEIR_ANTHROPIC_API_KEY>
+   ```
+
+   - Enter your OpenAI API key: let them enter the key, and then either create a ~/.continue/config.yaml with the following contents OR update the existing config.yaml to add the model
+
+   ```yaml
+   name: Local Config
+   version: 1.0.0
+   schema: v1
+
+   models:
+     - name: GPT 5.4
+       provider: openai
+       model: gpt-5.4
+       apiKey: <THEIR_OPENAI_API_KEY>
    ```
 
    When CONTINUE_USE_BEDROCK=1 is detected, it will use AWS Bedrock configuration. The user must have AWS credentials configured through the standard AWS credential chain (AWS CLI, environment variables, IAM roles, etc.).
diff --git a/extensions/cli/src/onboarding.ts b/extensions/cli/src/onboarding.ts
index 2a8162284de..b902cbf79ce 100644
--- a/extensions/cli/src/onboarding.ts
+++ b/extensions/cli/src/onboarding.ts
@@ -4,16 +4,20 @@ import * as path from "path";
 import chalk from "chalk";
 import { setConfigFilePermissions } from "core/util/paths.js";
 
-import { AuthConfig, login } from "./auth/workos.js";
+import { AuthConfig } from "./auth/workos.js";
 import { getApiClient } from "./config.js";
 import { loadConfiguration } from "./configLoader.js";
 import { env } from "./env.js";
 import {
   getApiKeyValidationError,
   isValidAnthropicApiKey,
+  isValidOpenAIApiKey,
 } from "./util/apiKeyValidation.js";
 import { question, questionWithChoices } from "./util/prompt.js";
-import { updateAnthropicModelInYaml } from "./util/yamlConfigUpdater.js";
+import {
+  updateAnthropicModelInYaml,
+  updateOpenAIModelInYaml,
+} from "./util/yamlConfigUpdater.js";
 
 const CONFIG_PATH = path.join(env.continueHome, "config.yaml");
 
@@ -32,7 +36,9 @@ export async function checkHasAcceptableModel(
   }
 }
 
-export async function createOrUpdateConfig(apiKey: string): Promise<void> {
+export async function createOrUpdateConfigAnthropic(
+  apiKey: string,
+): Promise<void> {
   const configDir = path.dirname(CONFIG_PATH);
 
   if (!fs.existsSync(configDir)) {
@@ -48,6 +54,24 @@ export async function createOrUpdateConfig(apiKey: string): Promise<void> {
   setConfigFilePermissions(CONFIG_PATH);
 }
 
+export async function createOrUpdateConfigOpenAI(
+  apiKey: string,
+): Promise<void> {
+  const configDir = path.dirname(CONFIG_PATH);
+
+  if (!fs.existsSync(configDir)) {
+    fs.mkdirSync(configDir, { recursive: true });
+  }
+
+  const existingContent = fs.existsSync(CONFIG_PATH)
+    ? fs.readFileSync(CONFIG_PATH, "utf8")
+    : "";
+
+  const updatedContent = updateOpenAIModelInYaml(existingContent, apiKey);
+  fs.writeFileSync(CONFIG_PATH, updatedContent);
+  setConfigFilePermissions(CONFIG_PATH);
+}
+
 export async function runOnboardingFlow(
   configPath: string | undefined,
 ): Promise<boolean> {
@@ -76,7 +100,7 @@ export async function runOnboardingFlow(
     // In test/CI environment, check for ANTHROPIC_API_KEY first
     if (process.env.ANTHROPIC_API_KEY) {
       console.log(chalk.blue("✓ Using ANTHROPIC_API_KEY from environment"));
-      await createOrUpdateConfig(process.env.ANTHROPIC_API_KEY);
+      await createOrUpdateConfigAnthropic(process.env.ANTHROPIC_API_KEY);
       console.log(chalk.gray(`  Config saved to: ${CONFIG_PATH}`));
       return false;
     }
@@ -87,8 +111,8 @@ export async function runOnboardingFlow(
 
   // Step 4: Present user with two options
   console.log(chalk.yellow("How do you want to get started?"));
-  console.log(chalk.white("1. ⏩ Log in with Continue"));
-  console.log(chalk.white("2. 🔑 Enter your Anthropic API key"));
+  console.log(chalk.white("1. 🔑 Enter your Anthropic API key"));
+  console.log(chalk.white("2. 🔑 Enter your OpenAI API key"));
 
   const choice = await questionWithChoices(
     chalk.yellow("\nEnter choice (1): "),
@@ -98,18 +122,28 @@ export async function runOnboardingFlow(
   );
 
   if (choice === "1" || choice === "") {
-    await login();
-    return true;
-  } else if (choice === "2") {
     const apiKey = await question(
       chalk.white("\nEnter your Anthropic API key: "),
     );
 
     if (!isValidAnthropicApiKey(apiKey)) {
-      throw new Error(getApiKeyValidationError(apiKey));
+      throw new Error(getApiKeyValidationError(apiKey, "anthropic"));
+    }
+
+    await createOrUpdateConfigAnthropic(apiKey);
+    console.log(
+      chalk.green(`✓ Config file updated successfully at ${CONFIG_PATH}`),
+    );
+
+    return true;
+  } else if (choice === "2") {
+    const apiKey = await question(chalk.white("\nEnter your OpenAI API key: "));
+
+    if (!isValidOpenAIApiKey(apiKey)) {
+      throw new Error(getApiKeyValidationError(apiKey, "openai"));
     }
 
-    await createOrUpdateConfig(apiKey);
+    await createOrUpdateConfigOpenAI(apiKey);
     console.log(
       chalk.green(`✓ Config file updated successfully at ${CONFIG_PATH}`),
     );
diff --git a/extensions/cli/src/services/index.ts b/extensions/cli/src/services/index.ts
index bebe44c9dfc..6f1e7134fad 100644
--- a/extensions/cli/src/services/index.ts
+++ b/extensions/cli/src/services/index.ts
@@ -84,7 +84,8 @@ export async function initializeServices(initOptions: ServiceInitOptions = {}) {
     !commandOptions.config &&
     process.env.ANTHROPIC_API_KEY
   ) {
-    const { createOrUpdateConfig } = await import("../onboarding.js");
+    const { createOrUpdateConfigAnthropic: createOrUpdateConfig } =
+      await import("../onboarding.js");
     const { env } = await import("../env.js");
     const path = await import("path");
 
diff --git a/extensions/cli/src/util/apiKeyValidation.ts b/extensions/cli/src/util/apiKeyValidation.ts
index f6fbd896c96..41af819b516 100644
--- a/extensions/cli/src/util/apiKeyValidation.ts
+++ b/extensions/cli/src/util/apiKeyValidation.ts
@@ -14,24 +14,51 @@ export function isValidAnthropicApiKey(
   return apiKey.startsWith("sk-ant-") && apiKey.length > "sk-ant-".length;
 }
 
+/**
+ * Validates an OpenAI API key format
+ * @param apiKey The API key to validate
+ * @returns true if the API key is valid, false otherwise
+ */
+export function isValidOpenAIApiKey(
+  apiKey: string | null | undefined,
+): boolean {
+  if (!apiKey || typeof apiKey !== "string") {
+    return false;
+  }
+
+  return apiKey.startsWith("sk-") && apiKey.length > "sk-".length;
+}
+
 /**
  * Gets a user-friendly error message for invalid API keys
  * @param apiKey The API key that failed validation
+ * @param provider The provider name (e.g., "Anthropic", "OpenAI")
  * @returns A descriptive error message
  */
 export function getApiKeyValidationError(
   apiKey: string | null | undefined,
+  provider: "anthropic" | "openai" = "anthropic",
 ): string {
   if (!apiKey || typeof apiKey !== "string") {
     return "API key is required";
   }
 
-  if (!apiKey.startsWith("sk-ant-")) {
-    return 'API key must start with "sk-ant-"';
-  }
+  if (provider === "anthropic") {
+    if (!apiKey.startsWith("sk-ant-")) {
+      return 'API key must start with "sk-ant-"';
+    }
+
+    if (apiKey.length <= "sk-ant-".length) {
+      return "API key is too short";
+    }
+  } else if (provider === "openai") {
+    if (!apiKey.startsWith("sk-")) {
+      return 'API key must start with "sk-"';
+    }
 
-  if (apiKey.length <= "sk-ant-".length) {
-    return "API key is too short";
+    if (apiKey.length <= "sk-".length) {
+      return "API key is too short";
+    }
   }
 
   return "Invalid API key format";
diff --git a/extensions/cli/src/util/yamlConfigUpdater.test.ts b/extensions/cli/src/util/yamlConfigUpdater.test.ts
index e0524e6028c..f2b3e996cd3 100644
--- a/extensions/cli/src/util/yamlConfigUpdater.test.ts
+++ b/extensions/cli/src/util/yamlConfigUpdater.test.ts
@@ -1,6 +1,9 @@
 import { parse } from "yaml";
 
-import { updateAnthropicModelInYaml } from "./yamlConfigUpdater.js";
+import {
+  updateAnthropicModelInYaml,
+  updateOpenAIModelInYaml,
+} from "./yamlConfigUpdater.js";
 
 describe("updateAnthropicModelInYaml", () => {
   const testApiKey = "sk-ant-test123456789";
@@ -12,8 +15,9 @@ describe("updateAnthropicModelInYaml", () => {
       expect(result).toContain("name: Local Config");
       expect(result).toContain("version: 1.0.0");
       expect(result).toContain("schema: v1");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
     });
 
     it("should create new config from invalid YAML", () => {
@@ -21,8 +25,9 @@ describe("updateAnthropicModelInYaml", () => {
       const result = updateAnthropicModelInYaml(invalidYaml, testApiKey);
 
       expect(result).toContain("name: Local Config");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
     });
   });
 
@@ -34,18 +39,19 @@ version: 1.0.0
 schema: v1
 # List of available models
 models:
-  - uses: openai/gpt-4
-    with:
-      OPENAI_API_KEY: TEST-openai-test
+  - name: GPT 4
+    provider: openai
+    model: gpt-4
+    apiKey: TEST-openai-test
 `;
 
       const result = updateAnthropicModelInYaml(yamlWithComments, testApiKey);
 
       expect(result).toContain("# My Continue config");
       expect(result).toContain("# List of available models");
-      expect(result).toContain("uses: openai/gpt-4");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: openai");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
     });
 
     it("should preserve comments when updating existing model", () => {
@@ -55,17 +61,19 @@ version: 1.0.0
 schema: v1
 # List of available models
 models:
-  - uses: anthropic/claude-sonnet-4-6
-    with:
-      ANTHROPIC_API_KEY: old-key
+  - name: claude sonnet 4.6
+    provider: anthropic
+    model: claude-sonnet-4-6
+    apiKey: old-key
 `;
 
       const result = updateAnthropicModelInYaml(yamlWithComments, testApiKey);
 
       expect(result).toContain("# My Continue config");
       expect(result).toContain("# List of available models");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
       expect(result).not.toContain("old-key");
     });
   });
@@ -76,17 +84,19 @@ models:
 version: 1.0.0
 schema: v1
 models:
-  - uses: openai/gpt-4
-    with:
-      OPENAI_API_KEY: TEST-openai-test
+  - name: GPT 4
+    provider: openai
+    model: gpt-4
+    apiKey: TEST-openai-test
 `;
 
       const result = updateAnthropicModelInYaml(existingConfig, testApiKey);
 
-      expect(result).toContain("uses: openai/gpt-4");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
-      expect(result).toContain("OPENAI_API_KEY: TEST-openai-test");
+      expect(result).toContain("provider: openai");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
+      expect(result).toContain("apiKey: TEST-openai-test");
     });
 
     it("should update existing anthropic model", () => {
@@ -94,26 +104,26 @@ models:
 version: 1.0.0
 schema: v1
 models:
-  - uses: anthropic/claude-sonnet-4-6
-    with:
-      ANTHROPIC_API_KEY: old-anthropic-key
-  - uses: openai/gpt-4
-    with:
-      OPENAI_API_KEY: TEST-openai-test
+  - name: claude sonnet 4.6
+    provider: anthropic
+    model: claude-sonnet-4-6
+    apiKey: old-anthropic-key
+  - name: GPT 4
+    provider: openai
+    model: gpt-4
+    apiKey: TEST-openai-test
 `;
 
       const result = updateAnthropicModelInYaml(existingConfig, testApiKey);
 
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("uses: openai/gpt-4");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
-      expect(result).toContain("OPENAI_API_KEY: TEST-openai-test");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("provider: openai");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
+      expect(result).toContain("apiKey: TEST-openai-test");
       expect(result).not.toContain("old-anthropic-key");
 
       // Should only have one anthropic model
-      const anthropicMatches = result.match(
-        /uses: anthropic\/claude-sonnet-4-6/g,
-      );
+      const anthropicMatches = result.match(/model: claude-sonnet-4-6/g);
       expect(anthropicMatches).toHaveLength(1);
     });
 
@@ -130,8 +140,9 @@ schema: v1
 
       expect(result).toContain("name: Local Config");
       expect(result).toContain("models:");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
     });
 
     it("should handle config with empty models array", () => {
@@ -147,8 +158,9 @@ models: []
       );
 
       expect(result).toContain("name: Local Config");
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
     });
   });
 
@@ -157,7 +169,10 @@ models: []
       const input = `# Test config
 name: Test
 models:
-  - uses: existing/model
+  - name: existing
+    provider: test
+    model: test-model
+    apiKey: test-key
 `;
 
       const result = updateAnthropicModelInYaml(input, testApiKey);
@@ -175,9 +190,10 @@ models:
       expect(result).toMatch(/^version: /m);
       expect(result).toMatch(/^schema: /m);
       expect(result).toMatch(/^models:/m);
-      expect(result).toMatch(/^\s+- uses: /m);
-      expect(result).toMatch(/^\s+with:/m);
-      expect(result).toMatch(/^\s+ANTHROPIC_API_KEY: /m);
+      expect(result).toMatch(/^\s+- name: /m);
+      expect(result).toMatch(/^\s+provider: /m);
+      expect(result).toMatch(/^\s+model: /m);
+      expect(result).toMatch(/^\s+apiKey: /m);
     });
   });
 
@@ -189,8 +205,9 @@ models: "not an array"
 
       const result = updateAnthropicModelInYaml(malformedConfig, testApiKey);
 
-      expect(result).toContain("uses: anthropic/claude-sonnet-4-6");
-      expect(result).toContain("ANTHROPIC_API_KEY: sk-ant-test123456789");
+      expect(result).toContain("provider: anthropic");
+      expect(result).toContain("model: claude-sonnet-4-6");
+      expect(result).toContain("apiKey: sk-ant-test123456789");
     });
 
     it("should handle different API key formats", () => {
@@ -202,8 +219,40 @@ models: "not an array"
 
       differentKeys.forEach((key) => {
         const result = updateAnthropicModelInYaml("", key);
-        expect(result).toContain(`ANTHROPIC_API_KEY: ${key}`);
+        expect(result).toContain(`apiKey: ${key}`);
       });
     });
   });
 });
+
+describe("updateOpenAIModelInYaml", () => {
+  const testApiKey = "sk-openai-test123456789";
+
+  it("should create new config from empty string", () => {
+    const result = updateOpenAIModelInYaml("", testApiKey);
+
+    expect(result).toContain("name: Local Config");
+    expect(result).toContain("provider: openai");
+    expect(result).toContain("model: gpt-5.4");
+    expect(result).toContain("apiKey: sk-openai-test123456789");
+  });
+
+  it("should update existing openai model", () => {
+    const existingConfig = `name: Local Config
+version: 1.0.0
+schema: v1
+models:
+  - name: GPT 5.4
+    provider: openai
+    model: gpt-5.4
+    apiKey: old-key
+`;
+
+    const result = updateOpenAIModelInYaml(existingConfig, testApiKey);
+
+    expect(result).toContain("provider: openai");
+    expect(result).toContain("model: gpt-5.4");
+    expect(result).toContain("apiKey: sk-openai-test123456789");
+    expect(result).not.toContain("old-key");
+  });
+});
diff --git a/extensions/cli/src/util/yamlConfigUpdater.ts b/extensions/cli/src/util/yamlConfigUpdater.ts
index 08b1c27fb2a..fed256f2990 100644
--- a/extensions/cli/src/util/yamlConfigUpdater.ts
+++ b/extensions/cli/src/util/yamlConfigUpdater.ts
@@ -1,10 +1,10 @@
 import { parseDocument } from "yaml";
 
 export interface ModelConfig {
-  uses: string;
-  with: {
-    ANTHROPIC_API_KEY: string;
-  };
+  name: string;
+  provider: string;
+  model: string;
+  apiKey: string;
 }
 
 export interface ConfigStructure {
@@ -27,10 +27,10 @@ export function updateAnthropicModelInYaml(
   apiKey: string,
 ): string {
   const newModel: ModelConfig = {
-    uses: "anthropic/claude-sonnet-4-6",
-    with: {
-      ANTHROPIC_API_KEY: apiKey,
-    },
+    name: "claude sonnet 4.6",
+    provider: "anthropic",
+    model: "claude-sonnet-4-6",
+    apiKey: apiKey,
   };
 
   try {
@@ -62,10 +62,82 @@ export function updateAnthropicModelInYaml(
 
     // Filter out existing anthropic models
     config.models = config.models.filter(
-      (model: any) => !model || model.uses !== "anthropic/claude-sonnet-4-6",
+      (model: any) =>
+        !model ||
+        !(
+          model.provider === "anthropic" && model.model === "claude-sonnet-4-6"
+        ),
+    );
+
+    config.models.push(newModel);
+
+    doc.set("models", config.models);
+
+    return doc.toString();
+  } catch {
+    const defaultConfig: ConfigStructure = {
+      name: "Local Config",
+      version: "1.0.0",
+      schema: "v1",
+      models: [newModel],
+    };
+
+    const doc = parseDocument("");
+    Object.keys(defaultConfig).forEach((key) =>
+      doc.set(key, (defaultConfig as any)[key]),
+    );
+    return doc.toString();
+  }
+}
+
+/**
+ * Updates or adds an OpenAI model configuration in a YAML string while preserving comments and formatting.
+ * This is a pure function that takes a YAML string and returns a modified YAML string.
+ *
+ * @param yamlContent - The original YAML content as a string (can be empty)
+ * @param apiKey - The OpenAI API key to set
+ * @returns The updated YAML content as a string with comments preserved
+ */
+export function updateOpenAIModelInYaml(
+  yamlContent: string,
+  apiKey: string,
+): string {
+  const newModel: ModelConfig = {
+    name: "GPT 5.4",
+    provider: "openai",
+    model: "gpt-5.4",
+    apiKey: apiKey,
+  };
+
+  try {
+    const doc = parseDocument(yamlContent);
+
+    if (!doc.contents || doc.contents === null) {
+      const defaultConfig: ConfigStructure = {
+        name: "Local Config",
+        version: "1.0.0",
+        schema: "v1",
+        models: [newModel],
+      };
+
+      const newDoc = parseDocument("");
+      Object.keys(defaultConfig).forEach((key) =>
+        newDoc.set(key, (defaultConfig as any)[key]),
+      );
+      return newDoc.toString();
+    }
+
+    const config = doc.toJS() as any;
+
+    if (!config.models) {
+      config.models = [];
+    }
+
+    config.models = config.models.filter(
+      (model: any) =>
+        !model || !(model.provider === "openai" && model.model === "gpt-5.4"),
     );
 
-    // Add the new anthropic model
     config.models.push(newModel);
 
     // Update the models array while preserving comments and structure