Hamas War: Microsoft cuts off Israel’s access to cloud, AI products

Microsoft claims to have cut off access to an Israeli military unit after a company review found that its cloud computing and artificial intelligence products were being used to assist in widespread surveillance of Palestinians.

The move follows accusations in the international media earlier this year that the Israeli Ministry of Defence had been utilising Microsoft’s Azure technology to support the occupation of the West Bank and the conflict in Gaza. In a blog post, Microsoft president and vice chair Brad Smith stated that the business was taking action to ensure that its terms of service were followed.

An investigation in February showed that the Israeli military’s use of Microsoft products skyrocketed after a deadly surprise attack by Hamas militants on October 7, 2023. The report cited internal Microsoft data showing the Israelis were using gigabytes of cloud storage and massive amounts of AI-enabled language translation services.

It also reported that Israel’s military used Microsoft Azure to compile information gathered through mass surveillance, which it transcribes and translates, including phone calls and text messages. That intelligence is then cross-checked with Israel’s in-house AI systems for targeting airstrikes.

It was reported that internal Microsoft data showed multiple Azure subscriptions were tied to Unit 8200, an elite cyber warfare unit within the Israeli Army responsible for clandestine operations, collecting signal intelligence and surveillance.

Following the report, Microsoft acknowledged in May that it had sold advanced AI and cloud computing services to the Israeli military during the Gaza war and aided in efforts to locate and rescue Israeli hostages. But the company said an internal review found “no evidence” its Azure platform was used to target or harm people. 

Another media house, working in partnership with an Israeli-Palestinian publication and a Hebrew-language outlet, reported in August that the commander of Unit 8200 had met directly with Microsoft chairman and CEO Satya Nadella in 2021. The Israeli unit then used Microsoft products to aid in the development of an AI-powered mass surveillance system that was sweeping up, translating and analysing millions of telephone calls per day made by Palestinian civilians. The report also revealed that data from the Israeli surveillance system was being stored at Microsoft cloud data centers in Europe.

Following the report, Microsoft commissioned a second review, this time by an outside law firm. While that review is still ongoing, Smith said Thursday the probe had uncovered evidence that its products were being used in violation of its terms of service. However, Smith did not name the specific Israeli unit losing access to Microsoft services.

Hossam Nasr, one of more than a dozen Microsoft employees fired or arrested after protests over the company’s involvement in the war in Gaza, called Thursday’s announcement a “significant and unprecedented win”. But, he said, it was not enough.

“Microsoft has only disabled a small subset of services to only one unit in the Israeli military,” said Nasr, an organiser with the group No Azure for Apartheid. “The vast majority of Microsoft’s contract with the Israeli military remains intact.”