diff --git a/src/materialized/ci/entrypoint.sh b/src/materialized/ci/entrypoint.sh
index e00f84e9a3b8e..cd1490d18da5a 100755
--- a/src/materialized/ci/entrypoint.sh
+++ b/src/materialized/ci/entrypoint.sh
@@ -195,7 +195,7 @@ export MZ_SYSTEM_PARAMETER_DEFAULT="${MZ_SYSTEM_PARAMETER_DEFAULT:-allowed_clust
 
 if [ -z "${MZ_NO_TELEMETRY:-}" ]; then
     export MZ_SEGMENT_API_KEY=${MZ_SEGMENT_API_KEY:-hMWi3sZ17KFMjn2sPWo9UJGpOQqiba4A}
-    export MZ_SEGMENT_CLIENT_SIDE=${MZ_SEGMENT_API_KEY:-true}
+    export MZ_SEGMENT_CLIENT_SIDE=${MZ_SEGMENT_CLIENT_SIDE:-true}
 fi
 
 if [ -n "${MZ_RESTART_ON_FAILURE:-}" ]; then