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Microsoft Cuts Cloud and AI Services to Israeli Military Unit

The company cited evidence that the services were used for mass surveillance of civilians, a violation of its long-standing terms of service.

Olivia Sharp 1 min read 655 views
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Microsoft ceased a set of cloud storage and AI services for an Israeli military unit after finding evidence of use for mass surveillance of civilians in violation of its terms.

Enforcement of Corporate Policy

Microsoft announced on September 25, 2025, that it had "ceased and disabled a set of services to a unit within the Israel Ministry of Defense (IMOD)." In a memo to employees, Vice Chair and President Brad Smith stated the decision followed an internal review that found evidence supporting allegations that the services were being used for mass surveillance of Palestinian civilians.

The action is the first known case of a U.S. technology company withdrawing services from the Israeli military since the start of the war in Gaza. The move sets a powerful precedent, establishing that …

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