Microsoft moves to block Israeli military from using some Azure cloud and AI services

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Brad Smith, Microsoft’s vice chairman and president, announced in a memo to employees today that the company will be blocking the Israel Ministry of Defense from accessing certain cloud AI and Azure services.

The Guardian initially reported that the Israeli government was using Microsoft to store data and recordings of calls made by Palestinians. Microsoft has since confirmed parts of the report are accurate and is taking steps to shut down certain services and subscriptions related to the issue.

Brad Smith stated that Microsoft has confirmed details from The Guardian’s reporting, specifically regarding IMOD’s use of Azure storage in the Netherlands and its utilization of AI services. As a result, Microsoft has notified IMOD that it will be canceling and disabling their subscriptions and access to certain cloud storage and AI technologies.

Smith reassured Microsoft employees that the company doesn’t create technology intended for governments to monitor their citizens. He emphasized, “We don’t provide tools for mass surveillance of civilians, a principle we’ve consistently upheld worldwide for over twenty years.”

Microsoft is still looking into the issues raised by a recent report from The Guardian and plans to update employees on its findings in the next few weeks. According to Microsoft President Brad Smith, the report contained information from outside sources that Microsoft couldn’t access due to its privacy commitments, and this helped with their internal investigation. Microsoft appreciates The Guardian’s reporting.

Employees at Microsoft globally have been protesting the company’s involvement in the Israel-Palestine conflict, specifically its technology being used in the war. The group ‘No Azure for Apartheid’ has staged protests at events like Build 2025 and during Microsoft’s 50th anniversary celebration, leading to the dismissal of five employees connected to the demonstrations.

You can read the full memo below:

I’m writing to inform you that Microsoft has stopped providing certain services to a department within the Israel Ministry of Defense. I understand this is a sensitive issue, and I’ll share more details about our decision below.

To start, it’s important to remember that Microsoft is a company, not a government. Like any business, we get to choose what products and services we make available to our customers. I’ve mentioned this a few times recently.

On August 15th, we announced we were looking into claims made in a Guardian article published on August 6th. The article reported that several people said the Israel Defense Forces (IDF) were using Azure to store data from phone calls collected through widespread surveillance of civilians in Gaza and the West Bank.

We carefully examined the claims made by The Guardian, guided by our commitment to privacy as a core principle – something Microsoft has always prioritized. Protecting privacy is vital for all of us at Microsoft because it builds the trust our customers need to confidently use our services, which is essential for our business.

I want to be clear: we don’t create technology meant to let governments secretly watch their citizens. We’ve held firm to this principle globally for over twenty years, and we recently reaffirmed it publicly on August 15th by stating that our terms of service specifically prevent using our technology for mass surveillance of people.

We also value and safeguard our customers’ privacy. As part of that commitment, we don’t look at their content during investigations like this one.

Since August 15th, our review has been conducted with respect for both established principles and the company’s existing policies, contracts, and commitments to customers. Throughout this process, Microsoft has not accessed any customer content belonging to IMOD. Instead, we’ve focused on examining Microsoft’s internal business records, such as financial statements, internal documents, and communications like emails and messages.

Our investigation has confirmed some of the details reported by The Guardian. Specifically, we’ve found evidence related to IMOD’s use of Azure storage in the Netherlands and their utilization of AI services.

We’ve notified IMOD that Microsoft is ending certain subscriptions and related services, including access to our cloud storage and AI tools. We discussed this decision with IMOD and the steps we’re taking to comply with our terms of service, which prioritize preventing the use of our services for monitoring civilians at scale.

As I mentioned at our recent all-hands meeting, this change won’t affect Microsoft’s ongoing efforts to safeguard cybersecurity for Israel and other nations in the Middle East, including those involved in the Abraham Accords.

We appreciate the reporting done by The Guardian. Their information came from sources outside of Microsoft, giving them access to details we couldn’t obtain due to our commitment to protecting customer privacy. This reporting was helpful as we conducted our own review.

I know you likely have more questions, and I want to assure you we’re still looking into things. I’ll share what I can as soon as it’s ready, including what we’ve learned from this process and how we’ll use those lessons moving forward.

Microsoft is committed to operating with strong ethical principles. We expect all of our decisions and actions to reflect these values, and this commitment will not change.

Brad

via The Verge

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2025-09-25 19:40