Microsoft under fire for letting China-based engineers access U.S. government cloud systems

A ProPublica investigation revealed Microsoft used engineers in China to support U.S. government cloud accounts, including the DoD and DOJ. Critics warn the practice poses espionage risks, especially as “digital escorts” lack the technical depth to supervise foreign staff. Microsoft pledged changes for DoD-related support, but it remains unclear if broader contracts will follow. The revelations surface amid ongoing layoffs and rising capital spend tied to AI infrastructure expansion.