Microsoft terminates cloud service to ‘Israeli’ military unit after use in civilian surveillance

Microsoft has terminated a set of its cloud and artificial intelligence (AI) services to an ‘Israeli’ military unit following a review that found evidence of their use in mass civilian surveillance.

The decision marks the first known instance of a major US technology company withdrawing services from the ‘Israeli’ military since the start of the war on Gaza.

The action was triggered by a joint investigation published by The Guardian, +972 Magazine, and Local Call in August, which revealed that Unit 8200, an elite ‘Israeli’ military intelligence unit, had been using Microsoft’s Azure cloud platform to collect and store millions of daily Palestinian phone calls.

The system, which became operational in 2022, was so extensive that it was reportedly nicknamed "one million calls per hour".

According to sources within the unit, the intelligence gathered from this program was used to "research and identify bombing targets in Gaza".

Following the investigative report, Microsoft launched a second, external review overseen by a law firm.

While an earlier internal review had found "no evidence" of misuse, the new probe uncovered "evidence that supports elements of The Guardian's reporting".

As a result, Microsoft's Vice Chair and President, Brad Smith, informed staff and the ‘Israeli’ Ministry of Defense of the decision to "cease and disable specified IMOD subscriptions," citing a long-standing company principle: "We do not provide technology to facilitate mass surveillance of civilians".

The terminated services included specific cloud storage and AI technologies.

The move comes after months of sustained pressure from a campaign called "No Azure for Apartheid," which included protests and sit-ins at company headquarters.

Activists, including some Microsoft employees who were fired for participating in protests, hailed the decision as a "significant and unprecedented win" but noted its limited scope.

The ‘Israeli’ military, however, stated that the action had caused "no operational damage".

According to ‘Israeli’ security sources, Unit 8200 had "prepared in advance by providing backups" and had already begun transferring the data to a new provider.