feat: Upwards-recursively read .env.braintrust containing BRAINTRUST_API_KEY

py/src/braintrust/btx/span_fetcher.py

@@ -12,6 +12,7 @@
 from typing import Any
 
 import requests
+from braintrust.env import BraintrustEnv
 
 
 _BACKOFF_SECONDS = 30
@@ -157,9 +158,9 @@ def _fetch_once(root_span_id: str, project_id: str, num_expected: int) -> list[d
 
 
 def _require_api_key() -> str:
-    key = os.environ.get("BRAINTRUST_API_KEY")
+    key = BraintrustEnv.API_KEY.get(None, use_dotenv=True)
     if not key:
-        raise ValueError("BRAINTRUST_API_KEY environment variable is not set")
+        raise ValueError("BRAINTRUST_API_KEY is not set in the environment or nearest .env.braintrust file")
     return key
 
 

py/src/braintrust/env.py

@@ -1,5 +1,7 @@
+import io
 import math
 import os
+import shlex
 from collections.abc import Callable
 from dataclasses import dataclass
 from enum import Enum
@@ -9,6 +11,8 @@
 T = TypeVar("T")
 EnvValue = bool | float | int | str
 _Parser = Callable[[str], EnvValue | None]
+BRAINTRUST_ENV_FILE = ".env.braintrust"
+BRAINTRUST_ENV_SEARCH_PARENT_LIMIT = 64
 
 
 def parse_float(value: str) -> float | None:
@@ -48,9 +52,9 @@ def parse_bool(value: str) -> bool | None:
 def parse_string(value: str) -> str | None:
     """Parse a string environment variable.
 
-    Empty strings are treated as unset so callers fall back to their default.
+    Empty or whitespace-only strings are treated as unset so callers fall back to their default.
     """
-    return value or None
+    return value if value.strip() else None
 
 
 class EnvParser(Enum):
@@ -68,18 +72,86 @@ class EnvVar:
     name: str
     parser: EnvParser
 
-    def get(self, default: T) -> T:
-        value = os.environ.get(self.name)
+    def get(self, default: T, *, use_dotenv: bool = False) -> T:
+        parsed = self._parse_value(os.environ.get(self.name))
+        if parsed is not None:
+            return cast(T, parsed)
+
+        if use_dotenv:
+            parsed = self._get_dotenv_value()
+            if parsed is not None:
+                return cast(T, parsed)
+
+        return default
+
+    def _parse_value(self, value: str | None) -> EnvValue | None:
         if value is None:
-            return default
+            return None
+        return self.parser.parser(value)
+
+    def _get_dotenv_value(self) -> EnvValue | None:
+        try:
+            directory = os.getcwd()
+        except OSError:
+            return None
+
+        for _ in range(BRAINTRUST_ENV_SEARCH_PARENT_LIMIT + 1):
+            env_path = os.path.join(directory, BRAINTRUST_ENV_FILE)
+            try:
+                with open(env_path, encoding="utf-8") as f:
+                    return self._parse_dotenv_contents(f.read())
+            except FileNotFoundError:
+                pass
+            except OSError:
+                return None
+
+            parent = os.path.dirname(directory)
+            if parent == directory:
+                break
+            directory = parent
 
-        parsed = self.parser.parser(value)
-        if parsed is None:
-            return default
-        return cast(T, parsed)
+        return None
+
+    def _parse_dotenv_contents(self, contents: str) -> EnvValue | None:
+        try:
+            from dotenv import dotenv_values
+
+            parsed = dotenv_values(stream=io.StringIO(contents), interpolate=False)
+            return self._parse_value(parsed.get(self.name))
+        except ImportError:
+            pass
+        except Exception:
+            return None
+
+        for line in contents.splitlines():
+            stripped = line.lstrip()
+            if not stripped or stripped.startswith("#"):
+                continue
+            if stripped.startswith("export "):
+                stripped = stripped[len("export ") :].lstrip()
+            if "=" not in stripped:
+                continue
+
+            key, value = stripped.split("=", 1)
+            if key.strip() != self.name:
+                continue
+
+            lexer = shlex.shlex(value.lstrip(), posix=True)
+            lexer.whitespace_split = True
+            lexer.commenters = "#"
+            try:
+                parts = list(lexer)
+            except ValueError:
+                return None
+            if not parts:
+                return None
+            return self._parse_value(parts[0])
+
+        return None
 
 
 class BraintrustEnv:
+    API_KEY = EnvVar("BRAINTRUST_API_KEY", EnvParser.STRING)
     HTTP_TIMEOUT = EnvVar("BRAINTRUST_HTTP_TIMEOUT", EnvParser.FLOAT)
     SYNC_FLUSH = EnvVar("BRAINTRUST_SYNC_FLUSH", EnvParser.BOOL)
     MAX_REQUEST_SIZE = EnvVar("BRAINTRUST_MAX_REQUEST_SIZE", EnvParser.INT)

py/src/braintrust/logger.py

@@ -2190,8 +2190,7 @@ def login_to_state(
 
     app_public_url = os.environ.get("BRAINTRUST_APP_PUBLIC_URL", app_url)
 
-    if api_key is None:
-        api_key = os.environ.get("BRAINTRUST_API_KEY")
+    api_key = api_key or BraintrustEnv.API_KEY.get(None, use_dotenv=True)
 
     org_name = _get_org_name(org_name)
 
@@ -2240,7 +2239,10 @@ def login_to_state(
         conn.set_token(api_key)
 
     if not conn:
-        raise ValueError("Could not login to Braintrust. You may need to set BRAINTRUST_API_KEY in your environment.")
+        raise ValueError(
+            "Could not login to Braintrust. You may need to set BRAINTRUST_API_KEY in your environment "
+            "or nearest .env.braintrust file."
+        )
 
     # make_long_lived() allows the connection to retry if it breaks, which we're okay with after
     # this point because we know the connection _can_ successfully ping.

py/src/braintrust/otel/__init__.py

@@ -3,6 +3,8 @@
 import warnings
 from urllib.parse import urljoin
 
+from braintrust.env import BraintrustEnv
+
 
 INSTALL_ERR_MSG = (
     "OpenTelemetry packages are not installed. "
@@ -29,6 +31,12 @@ class OTLPSpanExporter:
         def __init__(self, *args, **kwargs):
             raise ImportError(INSTALL_ERR_MSG)
 
+        def export(self, *args, **kwargs):
+            raise ImportError(INSTALL_ERR_MSG)
+
+        def force_flush(self, *args, **kwargs):
+            raise ImportError(INSTALL_ERR_MSG)
+
     class BatchSpanProcessor:
         def __init__(self, *args, **kwargs):
             raise ImportError(INSTALL_ERR_MSG)
@@ -145,7 +153,7 @@ class OtelExporter(OTLPSpanExporter):
     a more convenient all-in-one interface.
 
     Environment Variables:
-    - BRAINTRUST_API_KEY: Your Braintrust API key.
+    - BRAINTRUST_API_KEY: Your Braintrust API key. If unset, the nearest .env.braintrust file is used.
     - BRAINTRUST_PARENT: Parent identifier (e.g., "project_name:test").
     - BRAINTRUST_API_URL: Base URL for Braintrust API (defaults to https://api.braintrust.dev).
     """
@@ -163,7 +171,7 @@ def __init__(
 
         Args:
             url: OTLP endpoint URL. Defaults to {BRAINTRUST_API_URL}/otel/v1/traces.
-            api_key: Braintrust API key. Defaults to BRAINTRUST_API_KEY env var.
+            api_key: Braintrust API key. Defaults to BRAINTRUST_API_KEY env var, then .env.braintrust.
             parent: Parent identifier (e.g., "project_name:test"). Defaults to BRAINTRUST_PARENT env var.
             headers: Additional headers to include in requests.
             **kwargs: Additional arguments passed to OTLPSpanExporter.
@@ -173,15 +181,13 @@ def __init__(
         if not base_url.endswith("/"):
             base_url += "/"
         endpoint = url or urljoin(base_url, "otel/v1/traces")
-        api_key = api_key or os.environ.get("BRAINTRUST_API_KEY")
+        api_key_arg = api_key
+        env_api_key = os.environ.get("BRAINTRUST_API_KEY")
+        if api_key is None:
+            api_key = env_api_key if env_api_key and env_api_key.strip() else None
         parent = parent or os.environ.get("BRAINTRUST_PARENT")
         headers = headers or {}
 
-        if not api_key:
-            raise ValueError(
-                "API key is required. Provide it via api_key parameter or BRAINTRUST_API_KEY environment variable."
-            )
-
         # Default parent if not provided
         if not parent:
             parent = "project_name:default-otel-project"
@@ -190,10 +196,14 @@ def __init__(
                 "Configure with BRAINTRUST_PARENT environment variable or parent parameter."
             )
 
-        exporter_headers = {
-            "Authorization": f"Bearer {api_key}",
-            **headers,
-        }
+        self._braintrust_api_key_arg = api_key_arg
+        self._braintrust_headers_override_authorization = "Authorization" in headers
+        self._braintrust_has_api_key = bool(api_key and api_key.strip())
+
+        exporter_headers = {}
+        if self._braintrust_has_api_key:
+            exporter_headers["Authorization"] = f"Bearer {api_key}"
+        exporter_headers.update(headers)
 
         if parent:
             exporter_headers["x-bt-parent"] = parent
@@ -202,6 +212,41 @@ def __init__(
 
         super().__init__(endpoint=endpoint, headers=exporter_headers, **kwargs)
 
+    def _set_api_key_header(self, api_key: str) -> None:
+        if not self._braintrust_headers_override_authorization:
+            authorization = {"Authorization": f"Bearer {api_key}"}
+            exporter_headers = getattr(self, "_headers", None)
+            if isinstance(exporter_headers, dict):
+                exporter_headers.update(authorization)
+            else:
+                self._headers = {**dict(exporter_headers or {}), **authorization}
+
+            session = getattr(self, "_session", None)
+            if session is not None:
+                session.headers.update(authorization)
+        self._braintrust_has_api_key = True
+
+    def _ensure_api_key(self) -> None:
+        if self._braintrust_has_api_key:
+            return
+        api_key = self._braintrust_api_key_arg or BraintrustEnv.API_KEY.get(None, use_dotenv=True)
+        if not api_key or not api_key.strip():
+            raise ValueError(
+                "API key is required. Provide it via api_key parameter, BRAINTRUST_API_KEY environment variable, or the nearest .env.braintrust file."
+            )
+        self._set_api_key_header(api_key)
+
+    def initialize(self) -> None:
+        self._ensure_api_key()
+
+    def export(self, spans):
+        self._ensure_api_key()
+        return super().export(spans)
+
+    def force_flush(self, timeout_millis=30000):
+        self._ensure_api_key()
+        return super().force_flush(timeout_millis)
+
 
 def add_braintrust_span_processor(
     tracer_provider,
@@ -252,7 +297,7 @@ def __init__(
         Initialize the BraintrustSpanProcessor.
 
         Args:
-            api_key: Braintrust API key. Defaults to BRAINTRUST_API_KEY env var.
+            api_key: Braintrust API key. Defaults to BRAINTRUST_API_KEY env var, then .env.braintrust.
             parent: Parent identifier (e.g., "project_name:test"). Defaults to BRAINTRUST_PARENT env var.
             api_url: Base URL for Braintrust API. Defaults to BRAINTRUST_API_URL env var or https://api.braintrust.dev.
             filter_ai_spans: Whether to enable AI span filtering. Defaults to False.
@@ -340,6 +385,7 @@ def _get_parent_otel_braintrust_parent(self, parent_context):
 
     def on_end(self, span):
         """Forward span end events to the inner processor."""
+        self._exporter.initialize()
         self._processor.on_end(span)
 
     def _on_ending(self, span):
@@ -352,6 +398,7 @@ def shutdown(self):
 
     def force_flush(self, timeout_millis=30000):
         """Force flush the inner processor."""
+        self._exporter.initialize()
         return self._processor.force_flush(timeout_millis)
 
     @property