California inks deal with Anthropic to expand AI use in government

California has entered into an agreement with AI firm Anthropic, granting all state agencies and local governments access to the Claude AI assistant at a 50% discount, including training and support. Governor Gavin Newsom stated the goal is to help government workers move faster, solve problems more effectively, and deliver better results for Californians.

The partnership aligns with Newsom's March executive order aimed at accelerating AI adoption for government efficiency while maintaining safety standards. The state has already been integrating Anthropic's technology, with Claude powering internal tools like Poppy and being used for cybersecurity functions by the Department of Technology and the Office of Emergency Services. The Department of Motor Vehicles is using Claude for customer service, and the Department of Healthcare Services is employing it for Medicaid operations.

This deal proceeds despite Anthropic's federal supply chain risk designation. California's CIO, Chris Given, indicated that this designation was not a factor during contract negotiations. Governor Newsom's administration has established a process for the Department of Technology to review such federal designations.