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Microsoft stopped involving Chinese engineers in supporting Pentagon cloud services

- 21 July, 09:11 AM

Microsoft has said it will no longer allow engineers working in China to provide technical support for US defense customers, including the Department of Defense, that use its Azure cloud platform, Tom's Hardware reports.

The company made this decision after a ProPublica investigation into the involvement of Chinese specialists in supporting the Pentagon's cloud services, which could potentially pose risks to US cybersecurity.

Microsoft spokesman Frank Shaw said the company has changed its approach to technical support for U.S. government customers to ensure that no engineering teams from China will have access to projects related to the Department of Defense or other government agencies. Previously, Chinese engineers worked remotely under the supervision of so-called "digital assistants" from the United States, who often had lower technical qualifications.

Azure is one of Microsoft's key revenue streams, accounting for more than a quarter of the company's total revenue. In 2019, Microsoft won a $10 billion Pentagon contract, but it was canceled in 2021. In 2022, the company won new cloud contracts with Amazon, Google, and Oracle totaling up to $9 billion.

US Defense Secretary Pete Hegseth called the situation "unacceptable" and promised to review other systems for similar risks. Microsoft, in turn, assured that it would continue to work with the US government, adapting its security protocols to the threats.

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