California Governor Gavin Newsom is building an intentional architecture around how he procures and manages AI in California, and he has Anthropic as a consistent presence in that picture. However, as of June 2026, no agreement between Anthropic and the California government has been confirmed.
Fundamentals of regulation
On March 30, 2026, Newsom signed Executive Order N-5-26 establishing stricter safeguards for AI vendors doing business with the state. The order specifically targets issues such as algorithmic bias and data privacy, and requires vendors to meet certain transparency and accountability standards before California agencies can work with them.
The March order also included a notable provision that allows states to circumvent the Department of Defense’s supply chain restrictions on certain AI models. This is important because Anthropic has previously faced intense scrutiny over its relationship with the Department of Defense, including restrictions on military use of its technology. California’s executive order essentially created a lane for the state to continue working with Anthropic, regardless of how the federal dynamic plays out.
A subsequent executive order signed on May 21, 2026, mandated a formal study of how AI-driven labor market changes will impact California workers.
Antropic was already involved in California’s policy apparatus. The company submitted a submission to Newsom’s AI working group in March 2025 highlighting transparency standards, and its approach was praised by the administration.
This diagram does not contain any cryptographic or digital asset elements. The focus is on integrating traditional government procurement with AI software.
