Investigation Reveals Depth of Microsoft’s Ties with Israeli Military During Gaza War

The British newspaper The Guardian has published an investigative report by Harry Davies and Yuval Abraham, revealing how tech giant Microsoft strengthened its relationship with the Israeli military, providing technological support during the Gaza war.

According to the report, translated by Arabi21, leaked documents expose how the Israeli occupation integrated the American tech giant into its efforts to meet the growing demand for artificial intelligence (AI) tools. Microsoft’s collaboration with the Israeli military occurred during some of the most intense bombing campaigns on Gaza.

The leaked files offer insight into how Microsoft deepened its ties with Israel’s defense establishment following October 7, 2023. The company provided the military with enhanced cloud computing and storage services, signing deals valued at no less than $10 million, which included thousands of hours of technical support.

This investigation, conducted by The Guardian in collaboration with the Palestinian-Israeli outlet +972 Magazine and the Hebrew site Local Call, highlights the extensive relationship between Microsoft and the Israeli military. It partially relies on documents from the site Drop Sight News, which published its own findings.

Microsoft’s Role Amid the Gaza Onslaught

Following its attack on Gaza in October 2023, the Israeli military faced a surge in demand for computing power and storage. This prompted the rapid expansion of its digital infrastructure and a deeper reliance on what one commander referred to as the “wonderful world of cloud service providers.”

The report asserts that, as a result, the Israeli military became increasingly dependent on companies like Google, Amazon, and Microsoft to store and analyze vast amounts of intelligence data for prolonged periods.

Leaked documents, including business records from Israel’s Ministry of Defense and files from Microsoft Israel, reveal that Microsoft’s products and services—particularly its Azure cloud platform—were used by various units in Israel’s air, land, and naval forces, as well as by its intelligence directorate.

While some of Microsoft’s services were employed for administrative purposes, such as email and file management systems, the documents and interviews indicate that Azure was also utilized to support combat and intelligence operations.

As a trusted partner of Israel’s Ministry of Defense, Microsoft has been regularly tasked with sensitive and classified projects. Its employees have worked closely with Israel’s intelligence directorate, including the well-known Unit 8200, which is responsible for cyber surveillance and intelligence gathering.

AI Tools in Warfare

Documents further reveal that in recent years, Microsoft has granted the Israeli military broad access to its GPT-4 AI model, the engine behind ChatGPT. This was made possible through Microsoft’s partnership with OpenAI, which recently adjusted its policies to allow collaboration with military and intelligence clients.

Neither Microsoft nor the Israeli military—whose spokesperson declined to comment—provided a response to the findings. Israel’s Ministry of Defense also refrained from commenting. The documents illustrate the increasing integration of Microsoft’s systems into Israel’s war efforts and highlight the blurred lines between civilian and military digital infrastructure.

Growing Scrutiny of Big Tech’s Role

The deepening relationship between the Israeli military and major tech companies has sparked scrutiny in the United States, leading to protests among tech workers. These employees fear that the products they develop and maintain have been used to support the Gaza war, during which Israel has been accused of severe violations of international humanitarian law.

The Gaza war, marked by the Israeli military’s deployment of new battlefield technologies—including AI-powered targeting tools like “The Gospel” and “Lavender”—has raised questions about the role of U.S.-based tech giants in supporting Israel’s operations. Despite these concerns, their involvement has largely gone unnoticed.

A Competitive Landscape

The report points out that Microsoft failed in 2021 to secure a $1.2 billion contract with the Israeli government to overhaul the public sector’s cloud computing systems. The contract, known as Project Nimbus, was awarded jointly to Amazon and Google. This loss was a blow to Microsoft’s business in Israel and its standing as a major cloud provider for the Israeli military. However, the documents suggest that Microsoft took solace in assurances from Israeli defense officials that its strong partnership with the military would continue.

Executives at Microsoft were reportedly optimistic about the growth of this relationship, partly due to the integration of the company’s technology and services into Israel’s most complex and classified military operations.

Details of the Partnership

Leaked documents reveal that Microsoft supported a range of sensitive activities, including those involving multiple Israeli military units such as Unit 8200 and Unit 81, which develop advanced surveillance technologies. These units relied on Microsoft’s Azure cloud platform for their operations.

One system that leverages Microsoft technology is Rolling Stone, which is used by Israeli security forces to manage the population registry and monitor the movement of Palestinians in the occupied West Bank and Gaza.

During the Gaza attacks, Microsoft’s communication systems were used by Israel’s Air Force Unit Ofek, which manages large databases of potential targets for airstrikes. Microsoft employees and security contractors worked alongside military personnel in various units, providing remote technical support and assistance at military bases. Microsoft engineers also supported intelligence units like Unit 8200 and the visual intelligence-focused Unit 9900 by enhancing cloud infrastructure during the conflict.

Expansion of Services During the War

The files reveal that the Israeli military purchased 19,000 hours of engineering services from Microsoft between October 2023 and June 2024 to support a wide range of military units, generating approximately $10 million in fees for the company.

In a 2021 book believed to have been authored by the head of Unit 8200, it was predicted that Israel’s demand for cloud computing—driven by the military—would lead to partnerships with companies like Microsoft and Amazon, akin to its existing relationships with major arms manufacturers such as Lockheed Martin.

By 2024, as Israel launched an unprecedented ground and air campaign in Gaza, the military’s insatiable demand for munitions was matched by its need for greater access to cloud computing services. This provided Microsoft with an opportunity to deepen its ties with the Israeli military.

In November 2023, Israel’s Ministry of Defense reportedly turned to Microsoft for rapid support for the military’s Central Computing Unit, known as Maram. Responsible for the military’s technological infrastructure, Maram led the Israeli military’s shift toward greater reliance on commercial cloud computing providers.

During a defense industry conference in Tel Aviv last year, Maram’s commander described how the war initially overwhelmed the Israeli military’s systems, prompting the unit to acquire additional computing power from the “civilian world.”

The Role of AI in the Conflict

Colonel Racheli Deminsky stated during a presentation covered by +972 Magazine and Local Call that the key advantage offered by cloud providers was their “insane wealth of services,” including advanced AI capabilities. Although she did not name specific providers, logos for Azure, Amazon Web Services, and Google Cloud appeared in her slides.

Analysis of the documents reveals that the Israeli military’s use of Azure’s cloud storage increased by 60% in the first six months of the war compared to the preceding four months. During the same period, its consumption of AI products surged. By the end of March 2024, the military’s monthly usage of machine learning tools was 64 times higher than in September 2023.

The documents do not specify how the military used Azure’s AI products but indicate that tools for translation and speech-to-text, powered by AI, were employed. A significant portion of these services operated on “air-gapped” systems—isolated from public networks—suggesting their use in highly sensitive operations.

Meanwhile, Google’s cloud division has also reportedly provided similar AI-based services to the Israeli military, according to The Washington Post.

By 2024, OpenAI’s tools, accessed via Azure, accounted for a quarter of the military’s machine learning consumption. Microsoft has invested $13 billion in OpenAI in recent years. Notably, OpenAI quietly removed restrictions on the military use of its services in January 2025 as part of a broader policy overhaul.