Microsoft has announced that it has stopped providing cloud services and AI tools to a division of the Israeli Ministry of Defense, following an investigation into a report from the Guardian about the IDF’s Unit 8200 building a system for tracking Palestinians’ phone calls.

Microsoft has announced that it will stop providing specific cloud services to a unit within the Israeli Ministry of Defense. The decision comes in the wake of an investigation prompted by an August report from the Guardian, which revealed that the Israeli Defense Forces’ Unit 8200 had developed a system to monitor and store phone calls made by Palestinians.

Microsoft President Brad Smith communicated the decision to employees via email, stating, “While our review is ongoing, we have found evidence that supports elements of The Guardian’s reporting. This evidence includes information relating to IMOD consumption of Azure storage capacity in the Netherlands and the use of AI services.”

The software giant’s decision to suspend these services follows mounting pressure from its employees, who have been protesting Israel’s use of Microsoft’s software in its invasion of Gaza. In recent weeks, the company has terminated five employees who participated in demonstrations at its Redmond, Washington headquarters.

Breitbart News previously reported on an employee-led anti-Israel protest at Microsoft’s headquarters that resulted in 18 arrests.

The arrests occurred when a group of anti-Israel demonstrators, calling themselves “No Azure For Apartheid” and consisting of current and former Microsoft employees, gathered at the company’s headquarters around noon on Wednesday. The protesters accused Microsoft of supplying AI technology to the Israeli military that they claim is being used to “surveil, starve and kill Palestinians.”

According to the Redmond Police Department, officers initially attempted to persuade the protesters to leave the company’s private property. However, the group resisted and “became aggressive.” Some protesters poured red paint over the Microsoft sign, blocked a pedestrian bridge, and tried to create a barrier using tables and chairs taken from a nearby farmer’s market.

Microsoft responded to the demonstration, stating that it is committed to upholding its human rights standards and contractual terms of service, including in the Middle East. The company announced last week that it is conducting a thorough and independent review of recent allegations regarding the use of its Azure platform in Israel. According to a statement, “Microsoft will continue to do the hard work needed to uphold its human rights standards in the Middle East, while supporting and taking clear steps to address unlawful actions that damage property, disrupt business or that threaten and harm others.”

In his email, Smith explained that Microsoft had informed Israeli defense officials about its decision to disable the cloud-based storage and AI subscriptions that the IDF had been utilizing. He emphasized that the company does not examine customer data for this type of review and expressed gratitude to The Guardian for its reporting on the matter.

“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, underscoring the importance of maintaining the trust of Microsoft’s customers.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.

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