Pentagon Orders Audit of Microsoft Cloud, Bars Chinese Support

U.S. Defense Secretary Pete Hegseth said he has issued a formal letter of concern to Microsoft Corp. over the company’s Digital Escort program, which supplies cloud services to the Pentagon. Hegseth told reporters he is ordering a third-party audit of the initiative after learning that engineers based in China had been involved in servicing sensitive Department of Defense systems. Hegseth added that Chinese nationals and Chinese companies are now barred from supporting any Defense Department cloud environments and directed all Pentagon software-as-a-service providers to end such involvement immediately. Microsoft has been informed of the new restrictions, according to the secretary. The Defense Department did not disclose the audit’s timetable or potential consequences but said the review aims to assess security risks posed by foreign access to classified networks.