diff --git a/axlearn/common/launch.py b/axlearn/common/launch.py
index a0b4b08cf..a1e12c209 100644
--- a/axlearn/common/launch.py
+++ b/axlearn/common/launch.py
@@ -114,25 +114,13 @@ def setup():
         logging.info("LIBTPU_INIT_ARGS='%s'", os.environ["LIBTPU_INIT_ARGS"])
 
     with _init_context():
-        if FLAGS.jax_backend == "proxy":
-            # AXLearn assumes rbg PRNG implementation and restore from checkpoint
-            # will fail on pathways if this isn't set. This is due shape of [4]
-            # being hardcoded here:
-            # https://github.com/apple/axlearn/blob/8bb4421e62c815ef9f1ba3679c3277b8bbc6a449/axlearn/common/trainer.py#L330
-            jax.config.update("jax_default_prng_impl", "rbg")
-
-            # pylint: disable-next=import-error,import-outside-toplevel
-            import pathwaysutils  # pytype: disable=import-error
-
-            pathwaysutils.initialize()
-        else:
-            setup_spmd(
-                distributed_coordinator=FLAGS.distributed_coordinator,
-                num_processes=FLAGS.num_processes,
-                process_id=FLAGS.process_id,
-                jax_backend=FLAGS.jax_backend,
-                initialization_timeout=FLAGS.initialization_timeout,
-            )
+        setup_spmd(
+            distributed_coordinator=FLAGS.distributed_coordinator,
+            num_processes=FLAGS.num_processes,
+            process_id=FLAGS.process_id,
+            jax_backend=FLAGS.jax_backend,
+            initialization_timeout=FLAGS.initialization_timeout,
+        )
 
     if FLAGS.jax_profiler_port is not None:
         # Start jax.profiler for Tensorboard and profiling in open source.
diff --git a/axlearn/common/utils_spmd.py b/axlearn/common/utils_spmd.py
index 1917e99a3..708b20439 100644
--- a/axlearn/common/utils_spmd.py
+++ b/axlearn/common/utils_spmd.py
@@ -22,28 +22,37 @@ def setup(
     """Sets up the JAX environment for SPMD.
 
     Args:
-        jax_backend: The distributed backend, which can be "cpu", "gpu", or "tpu".
-        distributed_coordinator: The distributed coordinator address (in the form of <host>:<port>).
-            Needed only for `jax_backend != "tpu"` and `num_processes > 1`. Otherwise, the
-            coordinator will be configured automatically when `num_processes` and `process_id` are
-            provided.
-        num_processes: The number of processes. Needed only if distributed initialization is desired
-            for `jax_backend != "tpu"`.
-        process_id: The process ID (the process rank). Needed only if distributed initialization is
-            desired for `jax_backend != "tpu"`.
-        initialization_timeout: The jax distributed initialization timeout in seconds. If None, uses
-            jax default.
+        jax_backend: The distributed backend. Can be "cpu", "gpu", "tpu", or "proxy".
+        distributed_coordinator: The distributed coordinator address (e.g., "<host>:<port>").
+            If jax_backend is "tpu", this may be automatically inferred by JAX.
+            If jax_backend is "proxy", this is ignored.
+        num_processes: The number of processes.
+            If jax_backend is "tpu", this may be automatically inferred by JAX.
+            If jax_backend is "proxy", this is ignored.
+        process_id: The process ID (the process rank).
+            If jax_backend is "tpu", this may be automatically inferred by JAX.
+            If jax_backend is "proxy", this is ignored.
+        initialization_timeout: The jax distributed initialization timeout in seconds.
+            If None, uses jax default.
+            If jax_backend is "proxy", this is ignored.
 
     Raises:
         ValueError: If any of the following conditions are met:
-            * distributed_coordinator, num_processes, or process_id are not None when
-                jax_backend is "tpu";
-            * one of num_processes or process_id is None when jax_backend is not "tpu";
-            * distributed_coordinator is None when jax_backend is not "tpu" and num_processes > 1.
+            * `jax_backend` not in ("tpu", "proxy") and (`num_processes` is None or `process_id` is
+                None).
+            * `jax_backend` not in ("tpu", "proxy"), `num_processes` > 1, and
+                `distributed_coordinator` is None.
     """
     # Use a GSPMD-friendly PRNG implementation.
     jax.config.update("jax_default_prng_impl", "rbg")
 
+    if jax_backend == "proxy":
+        # pylint: disable-next=import-error,import-outside-toplevel
+        import pathwaysutils  # pytype: disable=import-error
+
+        pathwaysutils.initialize()
+        return
+
     global _jax_distributed_initialized  # pylint: disable=global-statement
     if not _jax_distributed_initialized:
         init_kwargs = {}