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California Partners With Anthropic to Put Claude AI in State Agencies at Half Price

California struck a first-of-its-kind deal with San Francisco-based Anthropic to give every state agency, city and county access to the Claude AI assistant at a 50 percent discount, Governor Gavin Newsom announced.

Sasha Lowery

July 5, 20261 min read

Government AI partnership - illustration, Jake Team LLC
Government AI partnership - illustration, Jake Team LLC

Saratoga, California — California has entered a first-of-its-kind partnership with San Francisco-based artificial intelligence company Anthropic to give state agencies access to the Claude AI productivity assistant at a 50 percent discount, Governor Gavin Newsom announced.

Under the agreement, all state agencies as well as cities and counties may use Claude for drafting and summarizing documents, analyzing information and supplementing day-to-day work, the governor's office said. The deal also provides free workforce training and technical assistance from Anthropic developers, and Claude becomes the first AI productivity tool available to all agencies through a new state technology portal.
"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. Anthropic's head of Americas, Kate Jensen, said the company feels "a real responsibility to our home state."

Saratoga, in the San Francisco Bay Area, is within commuting distance of Anthropic's San Francisco headquarters. State offices serving the region, including Department of Motor Vehicles and health services branches, are among the agencies already piloting Claude under the new agreement.

State officials said Claude is already in limited use, including at the Department of Motor Vehicles to shorten customer wait times and at the Department of Health Care Services for internal Medicaid workflows. The California Department of Technology and CalOES are also using Claude tools for cyber defense, scanning and patching state code.

Sources

  • https://www.gov.ca.gov/2026/06/29/governor-newsom-announces-a-first-of-its-kind-partnership-providing-anthropic-tools-to-state-agencies-and-improving-services-for-californians/
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Sasha Lowery

Sasha Lowery writes about community life, schools, public safety, and local events in Saratoga.

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