Microsoft Lands $125m Israel Contract Amid Controversy

Microsoft signed a $125.4m contract with Israel in 2024, according to a document published by the Israeli Ministry of Finance's accountant general. The deal was buried within a lengthy list of procurement commitments and only surfaced after close analysis. The agreement is for software licensing and has a value of approximately 464 million shekels.

The contract runs until 2027 and remained unpaid as of December 31, 2024. It's unclear what specific software the agreement covers or which bodies within Israel's defence ministry will use it.

This is not the first time Microsoft has signed a large-scale deal with Israel. In 2021, the company signed a $133m three-year contract with the Israeli military, and former employees suggest that this new agreement could be a renewal of that one.