Governor Gavin Newsom (D-CA) and Anthropic have reached an agreement enabling California government entities to utilize Claude at a reduced cost. This arrangement arises amidst challenges faced by businesses in managing the significant expenses associated with enterprise AI subscriptions.

According to the deal, all state departments and local municipalities will gain access to Claude, the AI chatbot created by Anthropic, as well as training and support services. A statement from the Governor’s office indicates that Claude will assist state personnel in drafting documents and evaluating data.

“AI should not substitute the essential work of government; it should assist our employees in working more efficiently, addressing issues more adeptly, and achieving superior outcomes for Californians,” Governor Newsom remarked in a statement.

This agreement follows Newsom’s executive order from March aimed at expediting the implementation of AI “to enhance governmental efficiency” while also upholding stronger safety measures.

“While others in Washington are formulating policies and establishing contracts in the shadows of misuse, we’re committed to pursuing this correctly,” Newsom said during that period.

As Anthropic nurtures a closer partnership with California, the federal government has made Antropic a rival to OpenAI. Earlier this year, a disagreement arose between Anthropic and the U.S. Department of Defense over a contract intended to allow the agency to use Claude for lawful purposes. Anthropic aimed to ensure protections that prohibit the government from utilizing its technology for the surveillance of Americans or deploying autonomous weapons without human intervention. However, Defense Secretary Pete Hegseth declined, leading the agency to forge an agreement with OpenAI instead. The government has even labeled Anthropic a “supply-chain risk,” hindering the firm from collaborating with other Pentagon contractors.

While the path of the state clearly diverges from the federal government’s actions, California’s CIO and Department of Technology chief Chris Given informed POLITICO that the supply-chain risk issue “simply didn’t arise” during the negotiations for this Anthropic contract.