This feels like a hit piece by semafor. A lot of the information in there is purely false. For example, Microsoft's AI Agreemeent says (prohibits):

"...cannot use...For ongoing surveillance or real-time or near real-time identification or persistent tracking of the individual using any of their personal data, including biometric data, without the individual’s valid consent."

There's nothing stopping Microsoft hammering out different terms for certain customers, like governments.

Semafor is Ben Smith's blog, trying to imitate a reputable newspaper like Financial Times.