Microsoft cuts off cloud services to Israeli military unit after report of storing Palestinians’ phone calls
Microsoft President Brad Smith, left, speaks at a press conference on future visions for the development and application of artificial intelligence in education in North Rhine-Westphalia at the Representation of the State of North Rhine-Westphalia in Berlin on June 4, 2025. To his right is Hendrik Wüst (CDU), Minister President of North Rhine-Westphalia, in front of the sign “From coal to AI.”
Soeren Stache | Picture Alliance | Getty Images
Microsoft said Thursday that it has stopped providing certain services to a division of the Israeli Ministry of Defense. The company did not say which specific services it had stopped providing.
The decision comes after the software company investigated an August report from The Guardian saying the Israeli Defense Forces’ Unit 8200 had built a system for tracking Palestinians’ phone calls.
“While our review is ongoing, we have found evidence that supports elements of The Guardian’s reporting,” Brad Smith, Microsoft’s president and vice chair, wrote in an email to employees. “This evidence includes information relating to IMOD consumption of Azure storage capacity in the Netherlands and the use of AI services.”
Microsoft’s decision to stop providing those services follows pressure from employees who have protested Israel’s use of the company’s software as part of its invasion of Gaza. Over the last few weeks, Microsoft has fired five employees who participated in protests at company headquarters in Redmond, Washington.
The move comes a week after a United Nations commission said that Israel has committed genocide against Palestinians with its invasion of Gaza.
Microsoft told Israeli defense officials that it had decided to disable cloud-based storage an artificial intelligence subscriptions the agency was using, Smith wrote. He said Microsoft does not look at customer data for the type of review it conducted, and he thanked the British newspaper for its reporting on the development.
“As employees, we all have a shared interest in privacy protection, given the business value it creates by ensuring our customers can rely on our services with rock solid trust,” Smith wrote.
On Thursday The Guardian reported that unnamed intelligence sources had said Unit 8200 was planning to migrate its supply of the phone calls to Amazon Web Services, the market-leading public cloud. AWS did not immediately comment.
An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.
Roselle Chen | Reuters
Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.
“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.
Archer and Joby did not immediately respond to CNBC’s request for comment.
The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.
By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.
Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.
Kivork refused to return the files when Joby approached him after conducting an investigation, according to the suit. The company also said Archer denied wrongdoing, and would not disclose how it learned about the terms of the agreement or provide results from an internal investigation it allegedly undertook.
The lawsuit comes during a busy period for electric vertical takeoff and landing (eVTOL) technology as companies race to gain Federal Aviation Administration certification to start flying commercially. ‘
The sector has also benefitted from President Donald Trump‘s newly minted eVTOL pilot program.
Joby argued in the complaint that it’s “imperative” to protect Joby’s work “from this type of espionage” to promote the sector’s success and ensure fair competition.
Last week, Joby said it completed its first test flight for a hybrid aircraft it’s working on with defense contractor L3Harris. This month, Amazon-backed Beta Technologies, another electric flight company, also went public on the New York Stock Exchange.
Joby shares have more than doubled over the last year, while Archer is up about 68%.
In August 2023, Archer settled a previous legal dispute with Boeing-owned Wisk Aero over the alleged theft of trade secrets. As part of the deal, Archer agreed to use Wisk as its autonomous tech partner.
A hearing is scheduled for March 20, 2026.
Joby and Archer year-to-date stock chart.
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