V-MIL Domain Audit: Microsoft Corporation

Audit Phase: V-MIL Audit
Subject: Microsoft Corporation
Date: December 2025
Classification: Public

Direct Defence Contracting & Procurement

Microsoft Corporation maintains a substantial and structured relationship with the Israeli Ministry of Defence (IMOD), making the Israeli military one of Microsoft’s most significant global defence customers. In 2021, Microsoft signed a three-year contract with IMOD worth $133 million, establishing the Israeli military as Microsoft’s second-largest military customer globally after the United States Department of Defense.¹² The Israeli military holds internal Microsoft classification “S500” status, denoting top-priority customer treatment within the company’s global account hierarchy.¹

Microsoft provides IMOD with “software, professional services, Azure cloud services, and Azure AI services, including language translation,” according to the company’s own public statement.³ Service agreements cover more than 635 individual subscriptions under specific divisions, units, bases, or project code words.¹⁴ Identified subscriber units include Mamram (the Israeli Defense Forces’ central computing unit), Unit 8200 and Unit 81 (military intelligence), Ofek Unit (Air Force target bank), Matspen Unit (operational and combat support systems), Sapir Unit (Military Intelligence Directorate ICT), and the Military Advocate General’s Corps.¹⁴

A classified unit operating inside the Prime Minister’s Office requires Microsoft employees with security clearance to sign off on cloud service provision, indicating deep integration into Israel’s national security apparatus.¹ Army units maintaining the “Rolling Stone” system—a population registry and movement management database covering Palestinians in the West Bank and Gaza—are also subscribers to Microsoft services.¹

In January 2025, leaked documents revealed that Microsoft struck at least $10 million in deals for technical support to the Israeli military during the Gaza war, with additional support projects worth $30 million under consideration in 2024.⁵ Microsoft launched its first cloud region in Israel in November 2023, with estimated investment of hundreds of millions of dollars.¹ Microsoft Israel operates from one of the company’s largest leased international properties and is designated as one of three global strategic centres.¹

Dual-Use Products & Tactical Variants

Microsoft’s Azure platform serves as the primary dual-use technology infrastructure supporting Israeli military operations. Azure OpenAI services, based on GPT-4 technology, constitute a core component of services provided to the Israeli military, accounting for approximately 75% of total military usage alongside translation tools.¹⁵ Azure machine learning tool consumption by the Israeli military was 64 times higher by March 2024 than in September 2023, indicating rapid escalation of AI integration into military operations.¹⁶

Azure storage services consumption was 60% higher in the first six months of the Gaza war than in the preceding four months.¹ By July 2024, data stored by the Israeli military on Microsoft servers reached more than 13.6 petabytes.¹ Azure storage usage increased over 155% between June 2023 and April 2024.⁵

No public evidence identified of ruggedised, mil-spec, or tactical hardware variants specifically marketed to Israeli security forces; the documented relationship centres on cloud and AI services rather than physical hardware.

Heavy Machinery, Construction & Infrastructure

No public evidence identified of Microsoft manufacturing or supplying heavy machinery, construction equipment, or vehicles used in settlement construction, the separation barrier, or demolition activity.

No public evidence identified of Microsoft contracts for construction or maintenance of checkpoints, detention facilities, military bases, or settlement infrastructure.

Supply Chain Integration with Defence Primes

Microsoft’s venture capital subsidiary M12 participated in a $74 million Series A funding round for Israeli facial recognition company AnyVision in June 2019.⁷⁸ Multiple media outlets reported that AnyVision’s technology was used by Israeli forces to surveil Palestinians in the West Bank, including at 27 crossings and checkpoints and in a classified surveillance system operating deep inside the West Bank.⁷⁸ AnyVision won Israel’s top defence prize in 2018 for preventing “hundreds of terror attacks” using its surveillance technology.⁷

Microsoft engaged former United States Attorney General Eric Holder and the law firm Covington & Burling to conduct an independent audit of AnyVision; the audit findings were published in March 2020.⁹ Following the audit, Microsoft divested from AnyVision in March 2020 and adopted a policy ending all minority investments in companies selling facial recognition technology.⁹

No public evidence identified of Microsoft providing components, sub-systems, or manufacturing services directly to Elbit Systems, Israel Aerospace Industries (IAI), Rafael Advanced Defense Systems, or Israel Military Industries (IMI) as prime contractors.

Logistical Sustainment & Base Services

Microsoft provides professional services and technical consultancy to Israeli military units; leaked documents show engineering support and consultancy costs of approximately $10 million since October 2023.⁵

No public evidence identified of catering, transport, fuel supply, waste management, or facilities maintenance contracts to IDF bases.

No public evidence identified of shipping, freight, or port services specifically servicing Israeli defence logistics or arms shipments.

Munitions, Weapons Systems & Strategic Platforms

No public evidence identified of Microsoft as prime contractor or licensed manufacturer of small arms, artillery, armoured vehicles, tactical drones, naval vessels, or other lethal platforms.

No public evidence identified of Microsoft supplying ammunition, explosive ordnance, propellants, or munitions precursor materials.

However, Azure cloud and AI services have been documented as computational infrastructure enabling AI-assisted targeting systems used by Israeli forces in Gaza. The documented systems include:

• Lavender: An AI system that analysed surveillance data to assign target scores to approximately 37,000 Palestinians as suspected militants in its early weeks of operation.⁶

• The Gospel (Habsora): An AI system generating automatic recommendations for strikes on residences of suspected militants, enabling approximately 100 targets per day compared to 50 per year in the pre-AI era.⁶

• Where’s Daddy?: A system designed to track when targets returned to family residences for strikes maximising civilian casualties.⁶

Unit 8200 used Azure storage to maintain a system collecting and storing millions of Palestinian phone calls daily since 2022, with data processed using Azure AI capabilities.¹ The system was designed to handle approximately “a million [Palestinian] calls an hour.”¹ By July 2025, surveillance data stored amounted to approximately 11,500 terabytes.¹

A significant portion of surveillance data was stored on Azure servers in the Netherlands and Ireland, raising European data protection concerns among Microsoft executives.¹ Microsoft terminated Unit 8200’s access to Azure services in September 2025 after finding terms-of-service violations.¹

Export Licensing, Regulatory & Legal History

No public evidence identified of specific export licence applications, end-user certificates, or government export control reviews in U.S., EU, or UK databases for Microsoft’s Israeli defence sales.

In May 2025, Microsoft blocked the email account of ICC Chief Prosecutor Karim Khan following U.S. sanctions imposed on ICC officials.¹⁰¹¹ Microsoft initially denied terminating Khan’s account, then corrected testimony to the UK Parliament acknowledging an “inaccuracy” in the company’s prior statements.¹⁰¹² The ICC subsequently announced plans to replace Microsoft Office with Germany’s openDesk open-source alternative.¹⁰

On December 2, 2025, a coalition of seven organisations—Abolitionist Law Center, Avaaz Foundation, European Legal Support Center, SOMO, Center for Constitutional Rights, Ekō, and GLAN—sent a formal Notice of Exposure to Liability to Microsoft CEO Satya Nadella and President Brad Smith, warning of potential criminal and civil liability for aiding and abetting atrocity crimes.¹³¹⁴

A shareholder resolution (Proposal 9) submitted for Microsoft’s December 2025 Annual General Meeting, co-signed by investors holding approximately $80 million in shares, requested a public report on Microsoft’s human rights due diligence effectiveness.¹⁵

Civil Society Scrutiny & Documented Investigations

Multiple civil society organisations have documented and scrutinised Microsoft’s involvement with Israeli military operations:

• Who Profits maintains an ongoing company profile documenting Microsoft’s involvement in Israeli occupation.¹⁶

• PAX “Companies Arming Israel” (June 2024) includes Microsoft in named-company documentation.¹⁷

• UN Special Rapporteur Francesca Albanese published a report (A/HRC/59/23, July 2025) addressing technology sector involvement in the economy of occupation and genocide.¹⁸

• UN OHCHR settlement enterprise database (September 2025 update) does not individually list Microsoft; however, Microsoft’s Benevity platform features organisations operating in illegal settlements.¹⁹

• SOMO published analysis (December 2025) on Microsoft’s potential criminal and civil liability for aiding and abetting atrocity crimes.¹³

• BDS Movement added Microsoft to its priority target list in July 2025, citing Azure services enabling apartheid and genocide.²⁰

• No Azure for Apartheid (NOAA) organised internal protests, including disruption of Microsoft’s 50th anniversary celebration in April 2025.²¹

• Microsoft terminated four employees in August 2025 who protested Israeli military ties, and two employees in April 2025 following the anniversary event disruption.²²

• Microsoft software engineer Hossam Nasr and data scientist Abdo Mohamed were terminated in November 2024 after holding a vigil for Gaza victims.²¹

• In September 2025, six civil society organisations—Electronic Frontier Foundation, Access Now, Amnesty International, Human Rights Watch, Fight for the Future, and 7amleh—sent a joint letter calling on Microsoft to end involvement in Palestinian repression.¹

• Amnesty International responded to Microsoft’s Unit 8200 termination by calling for investigation of all contracts, sales, and transfers to Israel.¹

End Notes