California Gov. Gavin Newsom signed an executive order on March 30 that requires artificial intelligence companies seeking state contracts to implement AI safety guardrails, Reuters reported the same day. The order also says that even if the federal government designates a company as a supply chain risk, California may allow it to remain a contractor based on its own assessment.

The order comes a little over a week after the White House unveiled its AI Action Plan, which urged states not to issue regulations, saying that they would undermine American innovation. Separately, in early March, the Department of Defense designated Anthropic as a supply chain risk after the company asked for safeguards on the use of its technologies for military applications, barring government contractors from using Anthropic tools in work for the U.S. military.