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Microsoft Cuts Off Select Cloud and AI Services to Israeli Defense Unit After Internal Review

The move follows a review that found evidence supporting reports of an Israeli defense unit using Azure resources for a phone‑call surveillance system.

Overview

  • Brad Smith told employees Microsoft has disabled specified Israel Ministry of Defense subscriptions, including particular cloud storage and AI services.
  • The company said its findings include records of IMOD consuming Azure storage capacity in the Netherlands and using AI services.
  • Microsoft stressed it does not provide technology for mass surveillance of civilians and that the action targets a defined set of services for a single unit.
  • Other contracts with Israel remain in place, with the company noting its cybersecurity work continues unaffected.
  • Reports indicate Israeli forces have moved data off Azure and may shift it to AWS, as employee protests over the contracts continued and several participants were fired.