Microsoft has ceased using China-based engineers to support U.S. Defense Department cloud systems, following a ProPublica investigation. Pentagon leadership and Congress reacted swiftly, prompting a two-week review of all such cloud contracts by Defense Secretary Hegseth.
Microsoft has announced that it will immediately stop using engineers based in China to support its cloud services for the U.S. military. The decision follows a ProPublica investigation that raised concerns over cybersecurity and triggered swift reactions from U.S. lawmakers and defence officials.
According to the exposé, engineers in China had access to Pentagon cloud systems through a little-known "digital escort" programme. In this setup, U.S.-based staff—often lacking sufficient expertise—were assigned to oversee remote sessions where Chinese engineers provided technical support, potentially exposing critical military infrastructure to risk.
The revelations drew sharp criticism from Senator Tom Cotton, chair of the Senate Intelligence Committee, who demanded answers on contractor oversight and security protocols. In response, Defense Secretary Pete Hegseth ordered a two-week review of all Defense Department cloud service contracts. He publicly declared that China would no longer be involved in any U.S. military cloud services.
Microsoft spokesperson Frank Shaw confirmed the policy change in a statement on X, stating that no China-based engineering teams would support Defense Department systems going forward.
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Microsoft has agreed a $9.7 billion partnership with data centre operator IREN, granting it access to Nvidia’s latest chips in a move designed to ease the computing bottleneck that has hampered the company’s ability to fully capitalise on the artificial intelligence boom.
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Microsoft has dismissed four employees for protesting against its ties to Israel, including two who staged a sit-in at the office of company president Brad Smith this week.
The Turkish Defence Ministry has voiced its support for recent military operations by Syrian government forces against the Kurdish-led Syrian Democratic Forces (SDF), which enjoy the support of the United States.
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The Trump administration has denied a report that countries would be required to pay $1bn to join a proposed U.S.-backed peace initiative, after Bloomberg News said a draft charter set out a membership fee.
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