California strikes deal with Anthropic for half-price Claude AI access across all state agencies

Anthropic and Gov. Newsom forge deal allowing California government to use Claude at half price

Governor Gavin Newsom (D-CA) and Anthropic have made a deal that allows California government agencies to use Claude at a discounted price. This agreement comes at a time when businesses are struggling to manage the hefty costs of enterprise subscriptions to AI tools. Under the deal, all state agencies and local governments will have access to Claude, Anthropic's AI chatbot, as well as training and support from Anthropic. A press release from the Governor's office says that Claude will help state employees draft documents and analyze information. "AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians," Governor Newsom said in a statement. This deal follows Newsom's March executive order that intends to accelerate the use of AI "to make government more efficient" while also maintaining stronger safety standards. "While others in Washington are designing policy and creating contracts in the shadow of misuse, we're focused on doing this the right way," Newsom said at the time. As Anthropic forges a closer relationship with the state of California, the federal government has made an enemy out of the OpenAI rival. Earlier this year, Anthropic and the U.S. Department of Defense clashed over a contract that would give the government agency permission to deploy Claude for any lawful use. Anthropic sought to explicitly carve out protections that prevent the government from using its technology to surveil Americans or deploy autonomous weapons without human oversight. But Defense Secretary Pete Hegseth refused, and the agency signed a deal with OpenAI instead. The government went as far as to declare Anthropic a "supply-chain risk," preventing the company from working with any other Pentagon contractors. While the state's path clearly diverges from the actions of the federal government, California's CIO and Department of Technology director Chris Given told POLITICO that the supply-chain risk designation "just didn't come up" while negotiating this Anthropic contract.

California gives all state agencies access to Claude at half price in Anthropic deal

California has struck a deal with Anthropic that gives all state agencies and local governments access to Claude at half price. The agreement, announced by Governor Gavin Newsom on Sunday, makes Claude the first AI productivity tool available statewide through the California Department of Technology's shared services portal. Anthropic will also provide free workforce training and technical support to state employees. "AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians," Newsom said. Some agencies have already been using Claude, including the Department of Motor Vehicles for customer service and the California Department of Health Care Services for internal workflows. The statewide rollout formalises what had been a patchwork of individual agency experiments. The deal follows Newsom's March executive order directing state agencies to develop new certification and procurement standards for AI vendors. That order required companies seeking government contracts to demonstrate responsible policies on bias, civil rights, and the prevention of misuse. The Anthropic partnership is the first major commercial agreement to emerge from that framework. The political context is hard to ignore. Earlier this year, the Pentagon labeled Anthropic a supply-chain risk after the company refused to let the military use Claude for mass domestic surveillance or fully autonomous weapons without human oversight. Defense Secretary Pete Hegseth rejected Anthropic's proposed safeguards, and the department signed a deal with OpenAI instead. California's CIO and Department of Technology director Chris Given told Politico that the supply-chain risk designation "just didn't come up" during contract negotiations. A federal judge has since blocked the Pentagon's designation, ruling it was not designed to protect national security but to punish Anthropic for refusing the contract terms. The state's willingness to partner with Anthropic while the federal government treats it as a security threat underscores a widening gap between Sacramento and Washington on AI policy. For Anthropic, the California deal is a commercial win at a moment when its enterprise strategy needs visible momentum. The company has committed 100 million dollars to its Claude Partner Network and is pushing Claude into large organisations through consulting firms like Accenture and Deloitte. California's endorsement, coming from the state that hosts Anthropic's headquarters, adds a prominent public-sector reference to that effort. Newsom has been building a broader AI policy apparatus alongside these commercial deals. Last week, California launched a first-in-the-nation AI job-loss tracker designed to monitor whether the technology is displacing workers. The governor, widely expected to run for president in 2028, is positioning California as a state that adopts AI aggressively while insisting on guardrails, a contrast he has drawn explicitly with the Trump administration's approach.

Newsom strikes Anthropic deal to get California government half price Claude AI access

* California government will have access to Anthropic's Claude with a 50% discount * The technology will be used to improve workflows and cybersecurity * Governor Newsom said Claude will be used "responsibly, transparently, and in service of people" The government of California will now be able to use Anthropic's Claude AI with a half price discount. A press release published by California Governor Gavin Newsom says the state's government will also have access to free workforce training, expert GenAI technical assistance and workflow input from Anthropic developers. "This partnership is about using technology the California way: responsibly, transparently, and in service of people. AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians," Gov. Newson said. Claude comes to California The discount for Claude also extends to local governments at the city and county level, allowing state workers with lower budgets to gain access to cutting edge tech. Gov. Newson said the technology will primarily be used for drafting, summarization, and analysis, while also "supplementing day-to-day work and improving services for Californians." Californian state agencies will be able to access Claude through the Statewide Information Technology Shared Services (SITeS), a new portal that centralizes AI tools for government use. The Californian government has already worked alongside Anthropic to integrate Claude into numerous tools for state workers, such as the Engaged California tool that provides Californians with more of a voice in policymaking. Claude Security and Claude Code are also being integrated into the workflows of the California Department of Technology and the California Governor's Office of Emergency Services in order to improve cybersecurity. The California DMV will use Claude to reduce wait times and improve services, and the Department of Healthcare Services will use Claude to assist in the state's Medicaid program. The state is home to 33 of the top 50 private AI companies in the world, including Anthropic. "As a California company, we feel a real responsibility to our home state. We're honored to expand our partnership with California's agencies and to put Claude to work for the people who keep this state running," said Kate Jensen, Anthropic's Head of Americas. "Building AI responsibly and in service of people has been our approach from the start, and that's exactly what this partnership puts into practice." Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

California signs deal to bring Claude AI tools to government workers

Cecilio Padilla is a digital producer for CBS Sacramento and a Sacramento-area native who has been covering Northern California for more than a decade. California has entered into a new partnership with artificial intelligence company Anthropic that will make its Claude AI assistant available to state agencies, Gov. Gavin Newsom's office announced Monday. Newsom framed the agreement as a way for AI to help government workers, not replace them. "AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians," Newsom said in a statement. The deal gives California agencies access to Claude at a 50% discount. State workers will also get free workforce training, technical assistance and workflow help from Anthropic. Claude will be the first AI productivity tool available to all state agencies through the California Department of Technology's new Statewide Information Technology Shared Services portal, according to Newsom's office. The same discounted offer will also be available to California cities and counties interested in using Claude. "Building AI responsibly and in service of people has been our approach from the start, and that's exactly what this partnership puts into practice," said Kate Jensen, Anthropic's head of Americas, in a statement. Newsom's office said some California agencies have already been using Claude for projects, including the Department of Motor Vehicles for customer service improvements and the California Department of Health Care Services for internal workflows. No total cost or projected savings from Claude's implementation were detailed in Monday's announcement. "This partnership is about using technology the California way: responsibly, transparently, and in service of people," Newsom said. The deal with California comes as Anthropic faces separate federal scrutiny over its powerful Mythos model, which was recently restricted over national security concerns before limited access was restored. California's broader AI push includes using the technology in government while tracking its potential impact on workers. Last week, Newsom's office announced a tool to track whether AI is contributing to job losses in the state.

California's Massive AI Deal Promises Faster Government -- and Critics Aren't Buying It

Today, California Governor Gavin Newsom announced plans to partner with AI startup Anthropic to help support the work of state employees. Newsom, a longtime proponent of technological innovation, has touted the company in the past. Now, with this new agreement, he's looking to work alongside one. According to the governor, state agencies may access Anthropic's AI model, Claude, at a 50 percent discounted price. They will also receive free workforce training, expert-backed GenAI technical assistance, and workflow input from Anthropic developers.

California Expands AI Push With Statewide Anthropic Partnership

Gov. Gavin Newsom said California struck a new deal with the artificial intelligence company Anthropic that will give state agencies access to its Claude assistant, along with training and technical support to improve how government services are delivered. Newsom framed the initiative as a way to speed up government work without displacing public employees, saying, "AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians." Government Operations Agency Secretary Nick Maduros said employees need access to modern tools, adding, "To do that, we need to make sure our teams have access to the best modern tools, including Claude and other emerging technologies." California has already tested Claude in several areas, including work tied to Engaged California and an internal tool called Poppy, according to Gov. The state also said the California Department of Technology and CalOES are using Claude Security and Claude Code for cyber defense tasks, while the DMV and the Department of Health Care Services are applying Claude to customer service and internal processes. The announcement also ties into Newsom's broader push on government efficiency and AI policy, including executive orders and workforce-focused initiatives described by the state. The governor's office pointed to prior steps such as statewide guidelines for public-sector AI use, training programs for employees, and legislation around transparency for advanced AI systems. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Anthropic Gives California Government a Discount on Claude | PYMNTS.com

The new arrangement follows a deal between the artificial intelligence (AI) company and California Gov. Gavin Newsom, Politico reported Monday (June 29), and makes Claude the first AI tool available to all state agencies and local governments. The goal is to increase adoption of Claude by reducing the chatbot's price for government agencies and municipalities by half, the report said. The deal also includes free workforce training and technical support from Anthropic. "A lot of departments are going to switch their usage to this contract, and that's very much our intent," Chris Given, California's chief information officer and director of the state Department of Technology, told Politico. "When we see that folks are going to be using a tool more, we want to make sure that we, as the state, have negotiated the best possible price for them." As Politico noted, this deal comes amid Anthropic's ongoing conflict with the White House. The administration has placed limits on the release of the company's most advanced AI models and designated the startup a supply chain risk. However, the government has since granted Anthropic approval to restore some access to its Mythos 5 AI model, according to a report last week from Bloomberg News. Last week, Newsom launched a new tool to track AI-related job losses, following an executive order in May directing state agencies to to prepare workers, communities and small businesses for the economic and labor disruptions expected from AI advancement. "AI should not replace the human work of government," Newsom said in a statement about the Anthropic deal. "It should help our workers move faster, solve problems more effectively, and deliver better results for Californians." Meanwhile, research by PYMNTS Intelligence shows that while workers are encountering AI on the job, many of them have not been told how to use it. That's according to the PYMNTS Intelligence study "The Resilience Deficit: Labor Workers in an Automated Economy," which surveyed members of the "Labor Economy," defined as hourly workers earning up to $25 an hour and generally less than $50,000 per year. Thirty-seven percent of those workers said their employer had introduced new automation or AI tools during the last 12 months. However, nearly 60% said they had not been trained on the new technology, and just 39% reported feeling confident they could find comparable-paying work if technology eliminated their current position.