Microsoft announced on September 25, 2025, that it has disabled certain cloud and artificial intelligence (AI) services used by a unit within the Israeli Ministry of Defense following an internal review. The review was prompted by a joint investigation published by The Guardian, +972 Magazine, and Local Call, which reported that an Israeli military agency had used Microsoft's Azure platform to store recordings of mobile phone calls made by Palestinians in the West Bank and Gaza.
Microsoft President Brad Smith stated that the company does not provide technology to facilitate mass surveillance of civilians. The internal review found preliminary evidence supporting the media's findings, including the Israeli military's use of Azure storage capacity in the Netherlands and AI services. As a result, Microsoft decided to terminate specific subscriptions used by the military unit, including certain cloud storage and AI services. However, the company emphasized that this action would not affect its cybersecurity services to Israel and other countries in the Middle East.
The Israeli Ministry of Defense declined to comment on Microsoft's decision. Previously, the military had denied that Microsoft was involved in data storage or processing.
Advocacy groups such as the Council on American-Islamic Relations and the "No Azure for Apartheid" campaign welcomed Microsoft's decision. These groups had previously urged the company to sever ties with Israel and stop providing services that could facilitate surveillance of Palestinians. Some Microsoft employees had been terminated for participating in on-site protests against the company's ties to Israel.
The Israeli military's actions in Gaza, which have caused significant civilian casualties and displacement, have drawn international condemnation. The United Nations and various human rights organizations have raised concerns about potential violations of international law. Israel maintains that its military operations are in response to security threats posed by Hamas and other militant groups.
Microsoft's decision to suspend services to the Israeli military unit marks a significant development in the ongoing debate over the role of technology companies in military operations and surveillance activities. The company's actions may influence other tech firms' policies regarding their involvement in military and government contracts, particularly in regions experiencing conflict.