Microsoft (MSFT) Faces Criticism Over Email Restrictions and AI Usage

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May 24, 2025
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Microsoft (MSFT, Financial) has been accused of blocking Outlook emails containing words like "Palestine," "Gaza," "genocide," and "apartheid," according to screenshots, recordings, and internal documents obtained by CNBC. Employees reported that emails containing these terms were often undelivered, even when part of official complaints to HR. Microsoft staff noted that emails with modified spellings such as "P4lestine" were sent successfully.

The controversy intensified during Microsoft's Build developer conference, where protests disrupted sessions. The protests were fueled by Microsoft's AI technology being used by the Israeli military. One protester, a software engineer, interrupted CEO Satya Nadella's keynote, questioning the company's involvement in alleged war crimes. Microsoft subsequently prohibited the engineer from returning in any capacity, including as an employee, contractor, or partner.

Microsoft's Chief of Communications, Frank Shaw, stated that emails are not blocked unless they are mass-distributed, and the company is working to reduce delivery delays. Despite these assertions, employees have reported significant delays in sending emails with sensitive terms.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.