Microsoft has confirmed that it has disabled a series of Azure cloud and AI services used by a unit within Israel’s Ministry of Defence (IMOD), after an internal investigation found evidence supporting allegations of mass surveillance.
In a message to employees, Brad Smith, the company"s Vice Chair and President, explained that the decision follows a review launched on 15 August in response to a report by The Guardian. The newspaper alleged that a unit of the Israel Defence Forces (IDF) was using Microsoft’s Azure platform to store phone call data obtained through widespread surveillance of civilians in Gaza and the West Bank.
Smith emphasised that Microsoft is "not a government or a country. We are a company," and reiterated the firm"s long-standing policy that its technology must not be used for the mass surveillance of civilians. He also stressed that customer privacy remained paramount throughout the review, noting that the tech giant did not access IMOD’s data and instead examined its own business records, financial statements, and internal communications.
The investigation uncovered evidence of IMOD’s consumption of Azure storage in the Netherlands and its use of Microsoft’s AI services, findings that aligned with elements of The Guardian’s reporting. Consequently, Microsoft has now ceased and disabled the specified subscriptions and services tied to the unit.
This development follows months of mounting internal dissent over the company’s work with Israel’s military. During its 50th anniversary event, a protest led by Microsoft employee Ibtihal Aboussad disrupted proceedings, with Aboussad accusing the firm of "using AI for genocide." Both Aboussad and fellow protester Vaniya Agrawal were later dismissed. At the time, the tech giant insisted that there was no evidence that its tech has harmed civilians in Gaza.
Smith added that the latest decision does not affect Microsoft’s broader cybersecurity work in Israel or the wider Middle East, including initiatives under the Abraham Accords. He also credited The Guardian’s reporting for helping inform the review, given the company’s privacy commitments prevented direct access to customer content.
The internal investigation remains ongoing, with Microsoft pledging to share further updates and lessons learned in the coming weeks. Smith concluded by affirming that the company will continue to be “guided by principles and ethics” and hold all decisions to that standard.