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Microsoft blocks Israeli defense unit from Azure and AI after review

Published 25 September 2025

Microsoft said on Thursday it has blocked an Israeli defense ministry unit from accessing certain cloud and artificial intelligence services after an internal review found evidence the technology had been used to store surveillance data on Palestinians in Gaza and the West Bank. The company said it has informed the Israeli defense ministry that it will cease and disable specified subscriptions, including Azure cloud storage and selected AI services, for the unit in question.

The action followed a newspaper investigation that alleged an Israeli military signals unit used the companys cloud platform to collect and store large volumes of intercepted Palestinian phone calls. Microsoft President and Vice Chair Brad Smith said the company opened a formal review after that reporting and found information that supported elements of the allegations, including records of the defense ministries consumption of Azure storage in the Netherlands and use of AI services. Smith reiterated that Microsofts standard terms of service prohibit using its technology for mass surveillance of civilians, and added, We do not provide technology to facilitate mass surveillance of civilians.

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