Microsoft has officially cut off parts of its cloud and AI services previously used by a unit within Israel's Ministry of Defense, following revelations that its technology was being exploited in a mass surveillance campaign targeting Palestinian civilians. The decision, announced on 25 September 2025, came after an internal review triggered by investigative reports linking Microsoft Azure to large-scale monitoring in Gaza and the West Bank.
Although Microsoft did not disclose the name of the specific unit involved, past investigations have identified Unit 8200 the Israeli military intelligence division as a major user of these services. Microsoft concluded that such usage violated its terms of service, particularly regarding civilian surveillance.
This marks one of the rare moments when a major U.S. tech company has taken direct action against Israel’s defense operations on ethical grounds. However, Microsoft clarified that not all its contracts with Israel were terminated cybersecurity-related collaborations remain active.
Human rights activists, including the “No Azure for Apartheid” campaign, welcomed the move as a symbolic victory but demanded that Microsoft go further by severing all ties with entities implicated in human rights violations.
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