Washington – Microsoft has taken the rare and significant step of disabling certain cloud and AI services used by a unit under Israel’s Ministry of Defense (IMOD), after an internal review found preliminary evidence that these services were being used in breach of its terms of service for mass surveillance of Palestinian civilians.
The move follows investigative reports showing that units like the elite intelligence arm—Unit 8200—were using Microsoft’s Azure infrastructure to store and analyze vast amounts of phone call recordings from Palestinians in Gaza and the West Bank. Microsoft president Brad Smith said the company initiated its review in mid-August after this external reporting raised concerns.
In a company-wide memo, Smith reiterated Microsoft’s long-standing policy: “We do not provide technology to facilitate mass surveillance of civilians.” As a result of the review, certain IMOD subscriptions—specifically those tied to Azure cloud storage in the Netherlands and associated AI tools—were suspended. Microsoft affirmed that these steps are part of its commitment to ethical tech use.
While cloud and AI services for the implicated unit have been disabled, the company has clarified this does not extend to all its work with Israel’s defense apparatus; cybersecurity contracts and other non-implicated services remain intact. The review itself remains ongoing, and Microsoft has pledged to share further findings.
Advocacy groups and tech workers have welcomed Microsoft’s action, calling it a critical test of corporate responsibility. But many warn that this is only a first step — emphasizing the need for transparency, stronger oversight, and enforceable safeguards so similar misuse does not continue elsewhere.
