Microsoft Halts Azure and AI Services for Israeli Defense After Surveillance Concerns
Key Points
- Microsoft stopped Azure cloud storage and certain AI services for the Israeli Ministry of Defense.
- The action follows an internal probe after a Guardian report linked Unit 8200 to surveillance data on Palestinians.
- Brad Smith emphasized Microsoft’s policy against facilitating mass civilian surveillance.
- The company’s review began in August and remains ongoing.
- Employee protests and sit‑ins have highlighted internal dissent over the firm’s ties to Israel.
Microsoft announced it has stopped providing Azure cloud storage and certain AI services to the Israeli Ministry of Defense after an internal investigation linked the unit’s use of its technology to the storage of surveillance data on Palestinian phone calls. The decision follows a Guardian report about Unit 8200’s use of Azure and reflects Microsoft’s long‑standing policy against facilitating mass civilian surveillance. The company said the review is ongoing, while employee activism and protests have intensified around Microsoft’s ties to Israel.
Background and Investigation
Microsoft disclosed that it has "ceased and disabled" specific subscriptions for the Israeli Ministry of Defense, removing access to Azure cloud storage and certain artificial‑intelligence services. The move came after an internal investigation was triggered by a Guardian story that alleged Unit 8200, an elite Israeli military intelligence unit, was using Azure to house data on phone calls obtained through surveillance of Palestinians in Gaza and the West Bank.
Brad Smith, Microsoft’s vice chair and president, wrote in a blog post that the company does not provide technology to facilitate mass surveillance of civilians. He cited a policy that has been applied worldwide for more than two decades and referenced a public statement made on August 15 that Microsoft’s standard terms of service prohibit the use of its technology for mass civilian surveillance.
Decision and Ongoing Review
The company informed Israel of its decision last week and indicated that the review, which began in August, remains ongoing. Microsoft declined to comment further on the specifics of what remains under review.
Smith thanked The Guardian for its reporting, noting that without the initial article the company would not have known to examine the matter, given customer privacy protections that prevent Microsoft from accessing a customer’s content directly.
Employee Reaction and Wider Context
Microsoft has faced internal and external pressure over its relationship with Israel. Employee protests erupted during the company’s 50th‑anniversary celebration in April, and a sit‑in at Smith’s office in August forced a lockdown. In recent months, the firm has terminated multiple employees for activism related to its contracts with Israel.
The decision to cut services aligns with Microsoft’s stated commitment to privacy protection and reflects growing scrutiny of technology firms’ roles in conflict zones.