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Microsoft Cuts Off Some Azure and AI Services to Israeli Defense Unit After Review

The company says records corroborated parts of an investigation into mass surveillance of Palestinian phone calls.

Overview

  • President Brad Smith said Microsoft disabled specified Israel Ministry of Defense subscriptions, citing a policy against facilitating mass surveillance of civilians.
  • An internal and external review found evidence supporting elements of reporting, including IMOD’s use of Azure storage capacity in the Netherlands and certain AI services.
  • Microsoft said it did not access customer content during the inquiry and that the outside review remains ongoing.
  • Microsoft did not name the unit; media reports focus on Unit 8200, with sources saying large datasets were moved from Microsoft datacenters after August and may be migrating to AWS.
  • The company said its cybersecurity work for Israel continues as activists and some employees argue the action is limited, and an Israeli security official said IDF operations were unaffected.