Microsoft ousts its Israel chief after reports that Azure quietly powered military AI targeting in Gaza

Microsoft’s Israel country manager has stepped down after an internal review of the unit’s work with Israel’s defense ministry.

The review follows reports that Azure stored large-scale Palestinian call data and may have supported AI-assisted targeting in Gaza.

The allegations raise concerns that Microsoft cloud and AI services were used in military surveillance and strike planning.

The case could bring legal, regulatory, and reputational risks for Microsoft as scrutiny grows over its government and defense contracts.