Embattled Gavin Newsom pushes a big AI discount — and it's not for you

California Governor Gavin Newsom (D) believes access to artificial intelligence is so important, he's willing to put taxpayer money where his mouth is.

The governor announced that the state is entering a new partnership that will inevitably see AI spread across state agencies and possibly municipalities throughout California.

'Building AI responsibly and in service of people has been our approach from the start.'

Newsom's government is already using AI in the Office of Emergency Services and the Department of Technology, but is looking to expand the usage across all departments by offering the service at a discount.

California agencies will have access to Anthropic's Claude at a 50% discount after the state secured a contract with the Silicon Valley company.

However, there is no statewide budget allocation for this service, and each department will have to pay from its own budget. The offer is available to local governments, too, the Sacramento Bee reported.

"We're entering a partnership to strengthen cybersecurity and provide [Claude AI] to state agencies — and California local governments — at a 50% discount," Newsom wrote on X.

"The Golden State helped build Silicon Valley — and every Californian should benefit from the responsible use of their latest innovations."

Despite the governor's wording, the "benefit" is to come only through government usage, as the discount is not available to the average resident.

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A state press release says the new deal offers workforce training, "expert" technical assistance, and "workflow input" from Anthropic developers to state actors.

"This partnership is about using technology the California way: responsibly, transparently, and in service of people," Newsom claimed. "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."

A California Department of Technology spokeswoman said that as of the Monday after the announcement, no departments had taken up the state's offer to use the technology under the new contract.

Blaze News previously reported on Claude's pricing structures, which can pile up quickly if not limited or monitored by employers. The prices are based on tokens, which cost upwards of $25 per million.

One token is equal to approximately four written characters in English text or "0.75 words," so generating a PDF costs about 125,000 tokens, a large document around 25,000 tokens, and a webpage roughly 2,500 tokens.

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Jim WATSON/AFP/Getty Images

Anthropic's head of Americas, Kate Jensen, said the company feels "a real responsibility to our home state" which encouraged the company to strike the deal.

"Building AI responsibly and in service of people has been our approach from the start, and that's exactly what this partnership puts into practice."

California's Government Operations Agency Secretary Nick Maduros said state employees are hoping to provide Californians "with the best possible service," and in order to do that they "need to make sure" their teams have access to "the best modern tools," including Claude and other "emerging technologies."

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