Microsoft reduces Israel's access to cloud and AI products over reports
of mass surveillance in Gaza
[September 26, 2025] By
MICHAEL BIESECKER, SAM MEDNICK and GARANCE BURKE
WASHINGTON (AP) — Microsoft said Thursday it had disabled services to a
unit within the Israeli military after a company review had determined
its artificial intelligence and cloud computing products were being used
to help carry out mass surveillance of Palestinians.
The action comes after The Associated Press and The Guardian published
reports earlier this year revealing how the Israeli Ministry of Defense
had been using Microsoft’s Azure platform to aid in the war in Gaza and
occupation of the West Bank. Brad Smith, Microsoft’s vice chair and
president, wrote in a blog post that the company was taking steps to
enforce compliance with its terms of service.
An AP investigation in February showed that the Israeli military’s use
of Microsoft products skyrocketed after a deadly surprise attack by
Hamas militants on Oct. 7, 2023. The AP’s report cited internal
Microsoft data showing the Israelis were using gigabytes of cloud
storage and massive amounts of AI-enabled language translation services.
The AP also reported that Israel’s military used Microsoft Azure to
compile information gathered through mass surveillance, which it
transcribes and translates, including phone calls and text messages.
That intelligence is then cross-checked with Israel’s in-house AI
systems for targeting airstrikes.
AP reported that internal Microsoft data showed multiple Azure
subscriptions were tied to Unit 8200, an elite cyber warfare unit within
the Israeli Army responsible for clandestine operations, collecting
signal intelligence and surveillance.
Following AP’s report, Microsoft acknowledged in May that it had sold
advanced AI and cloud computing services to the Israeli military during
the Gaza war and aided in efforts to locate and rescue Israeli hostages.
But the company said an internal review found “no evidence” its Azure
platform was used to target or harm people.
[to top of second column] |
 The Guardian, working in partnership
with the Israeli-Palestinian publication +972 Magazine and the
Hebrew-language outlet Local Call, reported in August that the
commander of Unit 8200 had met directly with Microsoft chairman and
CEO Satya Nadella in 2021. The Israeli unit then used Microsoft
products to aid in the development of an AI-powered mass
surveillance system that was sweeping up, translating and analyzing
millions of telephone calls per day made by Palestinian civilians.
The report also revealed that data from the Israeli surveillance
system was being stored at Microsoft cloud data centers in Europe.
Following The Guardian’s report, Microsoft
commissioned a second review, this time by an outside law firm.
While that review is still ongoing, Smith said Thursday the probe
had uncovered evidence that its products were being used in
violation of its terms of service. However, Smith did not name the
specific Israeli unit losing access to Microsoft services.
Microsoft declined to answer detailed questions from the AP on
Thursday, including whether Unit 8200 was involved. The company
would also not answer how it would ensure the Israeli military
wouldn't simply shift its mass surveillance operations to any of the
hundreds of other Azure subscriptions under its control.
An Israeli security official told the AP Microsoft's move would
produce “no damage to the operational capabilities” of the Israel
Defense Forces. The official spoke on condition of anonymity,
consistent with military protocol in Israel.
Hossam Nasr, one of more than a dozen Microsoft employees fired or
arrested after protests over the company’s involvement in the war in
Gaza, called Thursday’s announcement a “significant and
unprecedented win.” But, he said, it was not enough.
“Microsoft has only disabled a small subset of services to only one
unit in the Israeli military,” said Nasr, an organizer with the
group No Azure for Apartheid. “The vast majority of Microsoft’s
contract with the Israeli military remains intact.”
___
Mednick reported from Jerusalem and Burke from San Francisco.
All contents © copyright 2025 Associated Press. All rights reserved |
