California agencies get access to Anthropic’s AI tools at half price

California Gov. Gavin Newsom on Monday announced that the state has negotiated a contract with Anthropic to provide agencies access to Claude, the company’s AI assistant, with the aim of improving government operations and public services.

Under the agreement, state agencies can use Anthropic’s tools at a 50% discounted rate, to streamline administrative work, analyze large volumes of information, draft documents and improve constituent services. The agreement includes the same offer for California’s local governments.

Newsom said in a press release that generative AI deployments should augment, not replace, state employees, and that agencies remain responsible for ensuring accuracy, transparency and privacy protections. According to the announcement, deployments will be evaluated on a case-by-case basis under California’s AI policies.

“This partnership is about using technology the California way: responsibly, transparently, and in service of people,” Newsom said in the release. “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.”

California has used Claude before, including using the tool to launch Engaged California, a platform that helps provide Californians with a stronger voice in AI policymaking. The state also used Anthropic’s AI assistant to develop Poppy, a AI-powered digital assistant for public employees that the state began pilot testing last September.

Anthropic has steadily expanded its presence across government in recent years. The company this month launched a $15 million cyber defense program for state, local, tribal and territorial governments that provides Claude credits and cybersecurity resources to help public agencies identify vulnerabilities. California and Texas were the first two states to join the program. The company in May partnered with Code for America to develop AI-powered tools for SNAP caseworkers navigating increasingly complex benefits policies. The SNAP Policy Navigator uses Claude to help eligibility workers interpret guidance and reduce administrative burden.

Maryland announced a similar deal with Anthropic last year, allowing state employees to use Claude to help reduce child poverty, streamline housing access and improve public service delivery.

California’s initiative builds on the state’s AI strategy, which has included other projects, like the Career Passport digital workforce tool launched this month.

Rather than pursuing isolated AI pilots, California has increasingly sought enterprise agreements that allow agencies to share best practices while establishing governance standards. Last week, the state launched a website designed to track AI-related job-loss trends.