Policy Updates

On Thu, Sep 26, 2025, Microsoft announced a strategic decision to withdraw certain cloud and AI services from the Israeli military. This decision follows an investigation indicating potential violations of Microsoft’s terms of service by the Israeli military, specifically concerning the use of these services for surveillance activities in Gaza and the West Bank.

Service Restrictions

The decision, communicated by Microsoft’s Vice Chairman and President, Brad Smith, includes the cessation and disabling of specific subscriptions and services provided to the Israeli Ministry of Defense. The services affected involve certain cloud storage and AI technologies, emphasizing compliance with Microsoft’s terms of service, which prohibit the use of their technology for mass civilian surveillance.

Investigation and Findings

The decision was informed by an external review of Microsoft’s communications and financial records, conducted by Covington & Burling LLP and another technical consulting firm. Although the specifics of the evidence were not disclosed, the findings indicated misuse of Microsoft’s Azure and AI services by the Israeli military.

Technology Involved

Microsoft’s Azure platform, known for its cloud-based storage and AI capabilities, was reportedly used by the Israeli military for extensive surveillance operations. The platform’s ability to manage large volumes of data was a key element in these operations, as reported in earlier investigations.

Ongoing Review

Microsoft continues to review its service agreements and usage by the Israeli military. The company has reiterated its commitment to ensuring its technology is not used inappropriately, aligning with its policy against mass surveillance.

Implications

This move represents a significant operational policy shift for Microsoft. However, it remains unclear how this will impact the broader surveillance capabilities of the Israeli military, which may still access other Microsoft products for cybersecurity purposes.

Conclusion

Microsoft’s decision highlights its efforts to enforce service terms and address concerns about the misuse of its technologies. The company maintains that customer privacy regulations initially limited its knowledge of how its services were being utilized.