AI Safety and Regulation
August 28, 2025

Chinese nationals will no longer be allowed to manage Pentagon cloud services

U.S. Defense Secretary Pete Hegseth ordered a stop to Chinese engineers managing Pentagon cloud systems via Microsoft’s “digital escort” program. A third-party audit and DoD investigation have been launched.

In response to a ProPublica report, Defense Secretary Pete Hegseth directed an end to the practice of Chinese nationals remotely managing Pentagon cloud services through Microsoft’s “digital escort” program.

He labeled the arrangement a national security risk and ordered both a third-party audit of the program's code and performance, as well as a DoD-led investigation into the scope of Chinese involvement.

Hegseth emphasized that all contractors supporting Department of Defense systems must eliminate any Chinese participation going forward. There may be ramifications for AI programs going forward.

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Microsoft

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