 "Microsoft blocks Israeli military’s access to AI and cloud technology over mass surveillance of Palestinians")
Microsoft has blocked access to parts of its cloud and AI services for Israel’s Unit 8200, following reports that the elite cyber-intelligence division used the technology to carry out mass surveillance of Palestinians.
The decision, reported by The Guardian in collaboration with 972 Magazine, signals one of the most notable moves by a US technology giant to curb military use of its platforms over human rights concerns.
Revelations of mass surveillance
An investigation by 972 Magazine detailed how Unit 8200 allegedly exploited Microsoft’s Azure cloud to intercept and store vast quantities of Palestinian communications, including personal phone calls and private conversations.
The report said the programme processed “a million calls an hour” and accumulated up to 8,000 terabytes of data from Gaza and the West Bank, raising concerns about indiscriminate monitoring of civilians.
Following the exposé, Microsoft launched an internal review, concluding that the operations violated its terms of service. The company subsequently moved to block some of the tools linked to the programme.
Microsoft’s vice-chair and president, Brad Smith On Thursday informed staff of the decision, saying that the company had “ceased and disabled a set of services to a unit within the Israel ministry of defence”, including cloud storage and AI services, as reported by the Guardian.
Smith wrote: “We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades.”
Partial suspension, broader questions
The suspension applies only to certain AI and storage services, not to Microsoft’s wider defence contracts with Israel, according to the report. Israeli authorities were informed that other cloud functions remain available, reflecting Microsoft’s attempt to balance ethical concerns with its commercial and political relationships.
The decision comes as Unit 8200 reportedly shifted parts of its operations to other providers, including Amazon Web Services, shortly after the findings became public. This highlights the challenges of limiting surveillance activities when multiple global tech firms remain involved.
Impact Shorts
More ShortsWhy this matters
This is believed to be the first time a major US technology company has restricted services to an Israeli military unit amid the Gaza war. According to The Guardian, the decision followed pressure from Microsoft employees, human rights groups and investors urging the company to act.
The case highlighted growing scrutiny of Big Tech’s role in conflict zones. Critics argue that partial suspensions leave the core surveillance apparatus intact, while supporters say Microsoft’s step sets a precedent for corporate accountability in regulating the use of advanced technology by state actors.
Analysts said that the episode raises broader questions about how tech companies enforce ethical standards in politically sensitive environments. As 972 Magazine observed, the revelations show how commercial infrastructure originally marketed as neutral can be adapted for expansive state surveillance, blurring lines between civilian technology and military applications.
While Microsoft’s decision may redefine expectations of corporate responsibility, the episode also highlights the limits of unilateral action in a marketplace where numerous providers compete to supply advanced digital infrastructure.
The coming months will reveal whether this indicated the emergence of a genuine accountability framework or merely amounts to a symbolic gesture overshadowed by business as usual.
 "‘Perverse thing’: Bessent says Europe funding war against itself by buying Russian oil that India refines")
 "How foreign students subsidise America's education and why Trump's H-1B may end it")
 "Why is China 'giving up' special WTO benefits? What does it really mean?")
 "Slovenia imposes travel ban on Israeli PM Netanyahu over war crimes allegations")
 "‘Perverse thing’: Bessent says Europe funding war against itself by buying Russian oil that India refines")
 "How foreign students subsidise America's education and why Trump's H-1B may end it")
 "Why is China 'giving up' special WTO benefits? What does it really mean?")
 "Slovenia imposes travel ban on Israeli PM Netanyahu over war crimes allegations")
