Tech giant takes unprecedented action following investigation revealing use of Azure platform to monitor Palestinian civilians.
Microsoft Corporation has terminated a portion of its cloud computing and artificial intelligence services to an Israeli Defense Ministry unit following allegations that the technology was being used for mass surveillance of Palestinian civilians. The decision, announced Thursday by Microsoft President Brad Smith, marks the first time the tech giant has publicly cut off military services to Israel amid growing scrutiny over Silicon Valley's role in the Gaza conflict.
The move follows an August 6 joint investigation by The Guardian, +972 Magazine, and Local Call, which revealed that Israel's elite cyber warfare Unit 8200 had been using Microsoft's Azure cloud platform to collect, store, and analyze phone call recordings from millions of Palestinians in Gaza and the occupied West Bank.
Evidence of Violations
In a blog post published Thursday, Smith confirmed that an external review commissioned by Microsoft had uncovered evidence supporting "elements of the Guardian's reporting," including the use of Azure storage capacity in the Netherlands and certain artificial intelligence services.
"We do not provide technology to facilitate mass surveillance of civilians," Smith stated. "We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades."
The investigation revealed that following a 2021 meeting between Microsoft CEO Satya Nadella and Unit 8200 commander Yossi Sariel, an agreement was reached to provide the Israeli military unit with "a customised and segregated area" within Azure's cloud infrastructure. The system, operational since 2022, allegedly enabled Unit 8200 to leverage Azure's vast storage capacity and computing power for intelligence operations.
According to sources within Israeli intelligence cited by The Guardian, the cloud-based surveillance system helped guide deadly airstrikes and shaped military operations across the occupied Palestinian territories. Large volumes of Palestinian data were reportedly stored on Microsoft servers located in the Netherlands and Ireland.
Limited Scope of Action
While Microsoft's decision represents a significant corporate stance, critics note its limited scope. The company has only disabled specific services to one unit within Israel's Defense Ministry, leaving the majority of its contracts with the Israeli military intact.
"This is significant and unprecedented," said Hossam Nasr, one of several Microsoft employees terminated for protesting the company's involvement in the Gaza war. "But Microsoft has only disabled a small subset of services to only one unit in the Israeli military. The vast majority of Microsoft's contract with the Israeli military remains intact."
A representative for No Azure for Apartheid, a protest group formed to pressure Silicon Valley companies to cut ties with Israel, echoed this sentiment while celebrating the announcement as a partial victory in their campaign.
Growing Internal Dissent
The controversy has fueled significant internal opposition within Microsoft. The company has faced repeated protests from employees concerned about their technology being used in the Gaza conflict, which has killed nearly 65,000 Palestinians according to Palestinian health officials.
In recent months, Microsoft has terminated several engineers who protested against the use of its AI products by Israel's military, and in August, the company called police to remove protesters who had entered its headquarters. The company maintains it doesn't retaliate against employees who express their views but will respond to anyone deemed to have made threats.
As the conflict in Gaza continues and scrutiny of tech companies' role in military operations intensifies, Microsoft's action may set a precedent for how Silicon Valley navigates the complex intersection of technology, warfare, and corporate responsibility.
