Microsoft has announced that it will no longer allow Chinese engineers to provide technical support for its American defense clients, including the Department of Defense, utilizing its Azure cloud platform. This decision comes after an investigation by ProPublica highlighted potential cybersecurity risks associated with Chinese specialists supporting Pentagon cloud services.

According to Microsoft representative Frank Shaw, the company has revised its approach to technical support for U.S. government clients to ensure that no engineering team from China has access to projects related to the Department of Defense or other government entities. Previously, Chinese engineers worked under the remote supervision of so-called "digital custodians" from the U.S., often with lower technical qualifications.

Azure is a major revenue source for Microsoft, contributing over a quarter of the company's total revenue. In 2019, Microsoft won a $10 billion Pentagon contract, which was canceled in 2021. By 2022, the company secured new cloud contracts alongside Amazon, Google, and Oracle, totaling up to $9 billion.

U.S. Defense Secretary Pete Hegseth termed the situation "unacceptable" and promised to review other systems for similar risks. Microsoft, for its part, assured that it will continue collaborating with the U.S. government, adapting its security protocols in line with emerging threats.