Microsoft has launched an external investigation following allegations that its cloud technology was used by an Israeli military intelligence unit for mass surveillance of Palestinians. The inquiry comes after a joint media report revealed that Israel's Unit 8200 stored intercepted phone calls from the West Bank and Gaza on Microsoft's Azure platform, raising concerns among Microsoft executives about possible concealment of information by Israeli staff. The report also highlighted close ties between Microsoft's Israel office and the spy unit, prompting fears about the nature and extent of their collaboration.

Microsoft has appointed a US law firm to oversee the probe, which will expand on a previous investigation that found no evidence of Azure being used to target or harm people in Gaza. The company stated that using Azure for broad surveillance of civilians would violate its terms of service. Amid mounting internal pressure from employees demanding an end to military ties, Microsoft has committed to publicly sharing the findings of its review.