Microsoft has severed its partnership with Israel’s military intelligence unit Unit 8200, cutting off its access to the company’s cloud infrastructure and artificial intelligence services. The decision followed revelations that Microsoft’s technologies had been used for the mass interception of Palestinian phone calls in Gaza and the West Bank, in direct violation of Azure’s usage policies. The move came as the culmination of an investigation published in August.
The inquiry revealed that, under a classified project, the signals intelligence division had been collecting millions of calls per day, storing up to 8,000 terabytes of intercepted data in Microsoft’s data center in the Netherlands. The system allowed operatives to replay and analyze conversations across the entire population, with the scale inside the unit reportedly described as “a million calls per hour.” Following the August disclosures, the data troves were hastily removed from the EU, with sources suggesting they may have been migrated to Amazon Web Services.
The project was initiated in 2021 after a meeting between Microsoft CEO Satya Nadella and then-commander of Unit 8200, Yossi Sariel. The virtually unlimited resources of Azure enabled the military to collect and process vast volumes of communications with AI-driven analysis. According to sources, the system was also deployed during operations in Gaza, including preparations for airstrikes.
Microsoft launched two internal investigations. The first, in January—triggered by leaks alleging Israeli dependence on Azure—found no violations. However, a later joint investigation by The Guardian and its partners produced evidence that compelled Microsoft to revisit its conclusions. The subsequent audit, conducted by attorneys from Covington & Burling, led to the decision to revoke Unit 8200’s access to cloud services and select AI products.
Microsoft President and Chief Legal Officer Brad Smith told employees that the company “does not provide technology for mass surveillance of civilians” and remains committed to this principle worldwide. According to The Guardian, this marks the first time a U.S. technology corporation has denied the Israeli military access to core services since the onset of the Gaza conflict.
Despite these restrictions, Microsoft continues to maintain commercial ties with Israel’s Ministry of Defense, with access to certain services remaining in place. Yet the suspension of Unit 8200 underscores the fragility of entrusting critical military intelligence to foreign cloud providers and highlights the growing risks facing Big Tech partnerships with defense agencies amid intensifying international conflict.