As Microsoft Azure remains a global leader in cloud infrastructure, the outcome of this probe could significantly impact trust, compliance, and the future of AI governance.
Microsoft has initiated an urgent investigation into whether its Azure cloud services are being exploited by Israel’s Unit 8200 intelligence agency for mass surveillance of Palestinians in Gaza and the West Bank. The probe, revealed after a report by The Guardian, comes amid ongoing global criticism over AI ethics, human rights violations, and cloud computing misuse.
For more than two years, Microsoft has faced backlash from employees and activists accusing the tech giant of aiding surveillance through its contracts with Israel. During Microsoft’s 50th anniversary celebrations, events were disrupted by protests. At one keynote, an employee interrupted while the company’s three CEOs were on stage. In another incident, a staff member yelled “Shame on you” and labeled Microsoft’s head of AI a “war profiteer” who was “using AI for genocide.”
For more than two years, Microsoft has faced backlash from employees and activists accusing the tech giant of aiding surveillance through its contracts with Israel. During Microsoft’s 50th anniversary celebrations, events were disrupted by protests. At one keynote, an employee interrupted while the company’s three CEOs were on stage. In another incident, a staff member yelled “Shame on you” and labeled Microsoft’s head of AI a “war profiteer” who was “using AI for genocide.”
According to The Guardian, Israel’s Unit 8200 allegedly used a customized, isolated Azure cloud setup to record and store millions of daily Palestinian phone calls. The report also claims that this arrangement was linked to a deal with CEO Satya Nadella, raising fresh questions about corporate accountability in conflict zones.
Microsoft confirmed that the new allegations warrant a “full and urgent review”. The investigation will be led by attorneys from Covington & Burling. The company emphasized that if Azure was misused for mass civilian surveillance, it would directly violate its terms of service.
This marks the second probe into Microsoft’s relationship with the Israeli government. An earlier review in May 2025 found no evidence that Azure AI technologies were used to target civilians in Gaza. However, the latest inquiry specifically focuses on allegations of large-scale surveillance operations. The case highlights the ethical risks of cloud computing and AI in warfare, sparking debates over big tech accountability, human rights, and data privacy.
Microsoft confirmed that the new allegations warrant a “full and urgent review”. The investigation will be led by attorneys from Covington & Burling. The company emphasized that if Azure was misused for mass civilian surveillance, it would directly violate its terms of service.
This marks the second probe into Microsoft’s relationship with the Israeli government. An earlier review in May 2025 found no evidence that Azure AI technologies were used to target civilians in Gaza. However, the latest inquiry specifically focuses on allegations of large-scale surveillance operations. The case highlights the ethical risks of cloud computing and AI in warfare, sparking debates over big tech accountability, human rights, and data privacy.
