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Microsoft Limits Cloud and AI Services to Israeli Defense Unit Over Alleged Mass Surveillance

The company cites corroborated evidence of Azure storage in the Netherlands tied to an Israeli defense unit.

Overview

  • Microsoft said it suspended and disabled a subset of Azure storage and AI services assigned to a unit of Israel’s Ministry of Defense after an urgent review.
  • Brad Smith said the inquiry supported elements of investigative reporting, including IMOD’s use of Azure capacity in the Netherlands and Microsoft AI tools.
  • The company notified Israeli authorities of the restrictions and did not publicly name the unit affected, citing customer confidentiality.
  • Microsoft stated the move does not affect its cybersecurity work for Israel or other projects in the Middle East.
  • An Israeli security official told the AP the step would not harm operational capabilities, while Microsoft employees who protested the contracts called the action partial and the external review continues.