diff --git a/packages/jupyter-ai/jupyter_ai/handlers.py b/packages/jupyter-ai/jupyter_ai/handlers.py
index 1ea3f6125..91ec7d160 100644
--- a/packages/jupyter-ai/jupyter_ai/handlers.py
+++ b/packages/jupyter-ai/jupyter_ai/handlers.py
@@ -112,12 +112,23 @@ def get_chat_user(self) -> ChatUser:
         collaborative = self.config.get("LabApp", {}).get("collaborative", False)
 
         if collaborative:
-            return ChatUser(**asdict(self.current_user))
+            names = self.current_user.name.split(" ", maxsplit=2)
+            initials = "".join(
+                [(name.capitalize()[0] if len(name) > 0 else "") for name in names]
+            )
+            chat_user_kwargs = {
+                # set in case IdentityProvider doesn't return initials, e.g.
+                # JupyterHub (#302)
+                "initials": initials,
+                **asdict(self.current_user),
+            }
+            return ChatUser(**chat_user_kwargs)
 
         login = getpass.getuser()
+        initials = login[0].capitalize()
         return ChatUser(
             username=login,
-            initials=login[0].capitalize(),
+            initials=initials,
             name=login,
             display_name=login,
             color=None,