Anthropic and Gov. Newsom forge deal allowing California government to use Claude at half price
As Anthropic forges a closer relationship with the state of California, the federal government has made an enemy out of the OpenAI rival.
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.
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Amanda Silberling is a senior writer at TechCrunch covering the intersection of technology and culture. She has also written for publications like Polygon, MTV, the Kenyon Review, NPR, and Business Insider. She is the co-host of Wow If True, a podcast about internet culture, with science fiction author Isabel J. Kim. Prior to joining TechCrunch, she worked as a grassroots organizer, museum educator, and film festival coordinator. She holds a B.A. in English from the University of Pennsylvania and served as a Princeton in Asia Fellow in Laos.
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Key takeaways
- The partnership between Anthropic and California may inspire similar initiatives in Brazil, promoting AI adoption in the public sector.
- The divergence between state and federal governments in the US highlights the need for constructive dialogue on AI regulation.
- Newsom's approach emphasizes that AI should be an ally in human work, a crucial point for the debate on the future of work in Brazil.
Editorial analysis
The recent partnership between Anthropic and the California government highlights a growing trend of local governments adopting AI technologies to optimize processes and reduce costs. For the Brazilian tech sector, this movement may serve as a model, especially in a context where bureaucracy and government efficiency are often questioned. The potential to utilize AI tools like Claude to assist in document drafting and information analysis could inspire similar initiatives in Brazil, where digital transformation still faces significant barriers.
Moreover, the divergence between the California government's approach and the federal government's stance on Anthropic raises questions about how different levels of government may have distinct views on the regulation and use of emerging technologies. In Brazil, where AI regulation is still developing, observing how these conflicts unfold in the US may provide valuable lessons on the need for constructive dialogue between tech companies and government authorities.
Governor Newsom's statement that AI should serve to "help our workers move faster" reflects a growing understanding that technology should be an ally rather than a substitute for human labor. This perspective is crucial for Brazil, where AI adoption should be accompanied by a debate on the future of work and professional training. What is observed is an opportunity for Brazil to develop policies that encourage innovation while protecting workers' rights.
Finally, it is important to monitor the evolution of this partnership and its implications. How California implements the use of Claude may influence other jurisdictions, both in the US and internationally. For Brazil, the Californian experience could serve as a guide on how to ethically and effectively integrate AI, fostering an innovation environment that benefits all citizens.
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