Anthropic and Governor Newsom Strike Agreement for California to Access Claude at Discounted Rate
California Governor Gavin Newsom (D-CA) has reached an agreement with Anthropic that enables state government agencies to access their AI chatbot, Claude, at a reduced rate. This initiative arrives amidst challenges for organizations managing high costs associated with AI enterprise subscriptions.
The agreement provides all state and local government entities with access to Claude, along with training and support from Anthropic. According to a statement from the Governor’s office, Claude will assist state employees in drafting documents and analyzing data.
“AI should not replace human government work; rather, it should empower our workforce to function more efficiently, address issues more effectively, and achieve better outcomes for Californians,” Governor Newsom remarked.
This agreement follows an executive order issued by Newsom in March, aimed at expediting AI adoption to enhance governmental efficiency while reinforcing safety standards.
“While others in Washington are crafting policies amid concerns of misuse, we are dedicated to pursuing it responsibly,” Newsom noted at that time.
As Anthropic forms a closer partnership with California, the federal government has encountered issues with the company. Earlier this year, Anthropic clashed with the U.S. Department of Defense regarding a contract that would allow the agency to utilize Claude for various applications. Anthropic sought to ensure protections against the use of its technology for surveillance of Americans or for deploying autonomous weapons without human intervention. However, Defense Secretary Pete Hegseth did not agree, leading the agency to enter a deal with OpenAI instead. The federal government subsequently labeled Anthropic a “supply-chain risk,” restricting the company’s ability to collaborate with other Pentagon contractors.
Despite the state’s differing approach compared to the federal stance, California’s Chief Information Officer and Department of Technology Director Chris Given informed POLITICO that the supply-chain risk label “wasn’t an issue” during the negotiations for this Anthropic contract.
