Revealed: Microsoft signed $125m contract with Israel during first year of Gaza war

Revealed: Microsoft signed $125m contract with Israel during first year of Gaza war Microsoft signed a contract worth more than $100m with the Israeli government in 2024, according to documents published on the Israeli Ministry of Finance’s Hebrew-language website, Middle East Eye can reveal. The multimillion-dollar deal appears in Israel's annual budget-execution report for 2024, which was published by the finance ministry's accountant general in March 2025. However, details of the Microsoft agreement were obscured within a lengthy list of procurement commitments and only surfaced following close analysis of the budget report by MEE.

Buried in the report is a list of the defence ministry's largest procurement commitments. One entry records an agreement signed in 2024 with Microsoft "for the purchase of software licensing", worth approximately 464 million shekels (about $125.4m). According to the document, the full value of the contract remained outstanding as of 31 December 2024 – meaning nothing had been paid that year – and the engagement is expected to conclude in 2027.

(adsbygoogle = window.adsbygoogle || []).push({}); The report does not disclose what software the agreement covers, which bodies or units within Israel’s defence ministry or armed forces would use it, or whether the 2027 date refers to the licence term, the payment schedule or both. Microsoft did not answer questions about the contract, telling MEE it "had nothing to add from our side". Renewal of previous contract Last year, an internal document reviewed by the Associated Press revealed that Microsoft signed a $133m three-year contract with the Israeli military in 2021.

The AP also found that Microsoft listed the Israeli military as an "S500" client, a designation reserved for the company's highest-priority customers. The AP identified at least 635 individual subscriptions held by the Israeli military, under code names including "Mamram" and "8200", the latter referring to an elite Israeli cyberwarfare unit. Former Microsoft employees who have tracked the tech giant’…