Microsoft cuts services to Israeli military unit

Microsoft announced Sept. 25 that it had cut off services to an Israeli military unit after an internal review confirmed its AI and cloud tools were being used for mass surveillance of Palestinians, reports The Associated Press.

The move followed reporting by the Associated Press and The Guardian that revealed Israel's Ministry of Defense had relied heavily on Microsoft Azure to store intelligence, translate communications, and fuel AI systems tied to airstrikes during the war in Gaza.

Brad Smith, Microsoft's president, said the company was enforcing its terms of service, while a second outside review into its contracts remains ongoing. The Guardian further reported that Unit 8200, Israel's elite cyber warfare division, had used Azure to develop an AI-driven surveillance system capable of analyzing millions of Palestinian phone calls daily, with data stored in European cloud centers.

An Israeli official downplayed the impact, while former Microsoft employee Hossam Nasr called the restriction "a significant and unprecedented win" but criticized it as far too limited.