Key facts
- California Governor Gavin Newsom has finalized a deal with AI company Anthropic.
- The agreement aims to expand the use of Anthropic's AI models across state government services.
- Anthropic's AI models are already powering the state's digital assistant, Poppy, and are used for customer service and cybersecurity.
- The deal was negotiated despite a federal supply chain risk designation for Anthropic.
- California's executive order allows continued business with designated companies if the designation is found improper.
California Governor Gavin Newsom has finalized a deal with AI company Anthropic to expand the use of its artificial intelligence models across various state government services. The agreement, aimed at enhancing worker productivity and service delivery, comes despite a recent federal supply chain risk designation for Anthropic.
Newsom's administration has already integrated Anthropic's products into several functions. The state's digital assistant, Poppy, one of the first AI gateways for state employees, is powered by Anthropic's models. Additionally, the Claude AI underpins a platform for gathering public input on AI's impact on jobs and is utilized for customer service at the California Department of Motor Vehicles and internal workflows within the Department of Health Care Services for Medicaid recipients. A cybersecurity partnership also leverages Claude to identify vulnerabilities in state code and critical systems.
The state is actively seeking similar discount agreements with other AI and tech providers, having invited model providers to negotiate in December. The meeting with Anthropic occurred on March 5, the same day the Pentagon formally labeled the company a supply chain risk. However, state officials indicated this designation was not a factor during contract negotiations.
Newsom's executive order, issued after the Pentagon's decision, directs the California Department of Technology to review such federal designations. If deemed improper, state officials are instructed to issue guidance permitting continued business with the company. Recommendations on this matter are expected next month.