Microsoft restructures Israeli office following data probe

Microsoft has restructured its Israeli operations after an internal investigation into ethical concerns over data storage practices. The general manager and several other managers have departed the company. The office will temporarily be overseen by Microsoft France.

The changes follow reports that Israel's Ministry of Defense used Microsoft cloud services to store sensitive data obtained through surveillance in Gaza and the West Bank. Microsoft terminated its agreement with an IDF intelligence unit last September after protests emerged over the arrangement.

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Illustration of Meta's data leak involving employee tracking program, showing a computer with data spilling out.
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Meta pauses employee tracking program after data leak

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Meta has paused its Model Capability Initiative after sensitive employee data was exposed internally. The program tracks workers' keystrokes and mouse movements to train AI models. Company officials said they are investigating the incident.

Activists gathered outside the Microsoft Build conference in San Francisco this week to voice concerns about the environmental impact of AI data centers. They distributed leaflets detailing effects on land, water and power resources. Microsoft CEO Satya Nadella addressed community concerns during his keynote address on Tuesday.

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The UK's Competition and Markets Authority is investigating Microsoft to determine if it should receive strategic market status designation. The probe focuses on concerns over the company's influence in cloud services through software like Teams and Copilot. The formal investigation is set to begin in May.

The partnership between Google and T-Systems for sovereign cloud solutions in Germany faces restructuring, with Google already in talks with a new partner.

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Employees at Palantir Technologies are voicing internal concerns about the company's deepening involvement with the Trump administration's immigration enforcement and military operations. Slack messages and interviews reveal unease over contracts with ICE and potential roles in controversial strikes. Leadership defends the work as part of a culture of open debate.

Microsoft opened its Build developer conference on Tuesday with a focus on AI tools and agents. The keynote in San Francisco featured multiple new models and hardware concepts.

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The Israeli government has announced the expulsion of Spanish representatives from the Civil-Military Coordination Center (CMCC), which monitors the Gaza ceasefire. Benjamin Netanyahu accused Spain of waging a 'diplomatic war' against Israel and warned it will 'pay a price'. The decision comes amid rising diplomatic tensions between the two countries.

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