Microsoft stops selling some cloud and AI services to Israel's military

Microsoft

Microsoft has disabled certain subscriptions belonging to Israel’s Ministry of Defense, citing concerns that its technology was being used for civilian surveillance. The decision, announced Thursday, follows an internal investigation triggered by media reporting.

According to Microsoft president Brad Smith, the company cut access to Azure cloud storage and some AI services after determining that the Israeli military appeared to be housing intercepted phone call data from Palestinians in Gaza and the West Bank. He added that Microsoft’s standard terms prohibit such use worldwide, a policy the company has maintained for two decades. "We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades," said Smith.

The probe began in August after The Guardian reported that Unit 8200, Israel’s elite intelligence unit, was using Microsoft’s cloud to store surveillance data. Smith publicly credited that reporting, noting that without it, the company would not have known to investigate, as Microsoft does not access customer content due to privacy protections.

The company has faced increasing pressure from within its workforce over contracts with Israel. Protests broke out during its 50th anniversary event earlier this year, and a sit-in at Smith’s office in August led to a temporary lockdown. Several employees have since been dismissed for activism related to the issue.

Microsoft has not detailed the full scope of its restrictions but confirmed the review remains ongoing.