Key facts
- Microsoft signed a contract worth approximately $125.4 million with the Israeli Ministry of Defense in 2024.
- The contract is for software licensing and is expected to conclude in 2027.
- The full value of the contract remained outstanding as of December 31, 2024.
- A previous contract worth $133 million was signed in 2021.
- Microsoft stated it disabled a small subset of services to one unit of the Israeli military following an external review.
Microsoft signed a contract valued at approximately $125.4 million with the Israeli Ministry of Defense in 2024 for software licensing, according to documents from the Israeli Ministry of Finance. The agreement, which is expected to conclude in 2027, was published in March 2025 and details were obscured within a larger procurement report.
The contract's full value was outstanding as of December 31, 2024. This deal predates recent controversies surrounding Microsoft's provision of cloud services to the Israeli military, which came to light in August 2025.
Previous reporting by the Associated Press revealed a $133 million, three-year contract signed in 2021 between Microsoft and the Israeli military, which listed the military as a top-priority customer. Some former Microsoft employees suggest the new agreement could be a renewal of this prior contract, given the similar values and multi-year terms.
In August 2025, reports emerged that Israel's Unit 8200 had used Microsoft's Azure cloud platform to store recordings of millions of phone calls made by Palestinians. Following these reports, Microsoft commissioned an external review and subsequently disabled a small subset of services to one unit within the Israeli Ministry of Defense, according to company president Brad Smith.
Activists, including former Microsoft employee Abdo Mohamed, argue that the newly revealed contract demonstrates Microsoft's continued enablement and profit from actions against Palestinians. Mohamed stated that the company executives chose to "double down on their complicity in genocide and apartheid by signing this contract."