Governor Newsom shakes hands with Anthropic executive after announcing AI discount for state agencies.
California state agencies and local governments are set to benefit from a significant cost reduction in accessing advanced artificial intelligence, with Governor Gavin Newsom’s office announcing a 50% discount on Anthropic’s Claude AI platform. This initiative aims to enhance government operations through responsible and transparent use of AI technology.
The agreement, detailed in a press release, provides state agencies with access to Claude, an AI productivity assistant, at a substantially reduced price. Beyond the discount, the partnership includes free workforce training and expert technical assistance from Anthropic developers. Local governments, including cities and counties across California, will also have access to this same discounted offer.
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 (SITeS) portal. This centralized portal offers transparent pricing for AI tools and is designed to improve operational efficiency, enhance data security, and optimize the state worker experience.
Governor Newsom emphasized the state’s approach to adopting new technologies. “This partnership is about using technology the California way: responsibly, transparently, and in service of people,” he stated. “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.”
Anthropic, a California-based company, expressed its commitment to its home state. Kate Jensen, Head of Americas at Anthropic, said, “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.” She added that the company’s approach has always been to build AI responsibly and in service of people, a principle that this partnership embodies.
California has already begun integrating Claude into various government functions. The tool has been used to facilitate Engaged California, a deliberative democracy platform aimed at giving Californians a stronger voice in policymaking. It also played a role in developing Poppy, an AI tool created by state workers for state workers to streamline common business needs and ensure more reliable outcomes.
Furthermore, the California Department of Technology (CDT) and the California Office of Emergency Services (CalOES) are leveraging Claude for cybersecurity initiatives, including Claude Security and Claude Code, for scanning, triaging, and patching state code. Major agencies are also adopting Claude: the California Department of Motor Vehicles (DMV) is using it to improve customer service and reduce wait times, while the California Department of Healthcare Services, the nation’s largest Medicaid agency, is employing Claude for internal workflows to better assist Medicaid recipients.
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