"By standing with us, we were able to be the first university that was able to divest from major weapons manufacturers Lockheed Martin, Caterpillar, Palantir and Leonardo," a student named Adeel told the more than 100 students in attendance at the rally on Thursday.
In May, the university held an open negotiation session with students. Students peacefully dismantled the encampments at the end of the school year with the goal that negotiations would continue over the summer.
"And to continue the work that was started by the liberation movements of the 60s, and to say we do not want education to be invested in the killing apparatus of the state and global imperialism," said SFSU Professor Omar Zaza to cheers.
In a statement, the San Francisco State University Foundation said, in part, "The results of this plan will... strengthen the Foundation's stated commitment to reflect the University's values... while also increasing transparency around investments."
RELATED: Students for Gaza at SFSU scale back encampment; reach agreement with administration
The statement goes on to say: "We have been lauded for being a leader in ESG (environmental, social, and governance) investment before, and with credit to Students for Gaza, our revised policy affirms our leading role in values-driven advising."
The university has a $163 million endowment. Its current guideline limits investment in fossil fuels, and will now add removing investments in any company whose revenues come from weapons manufacturing. The agreement also includes a new clause in the SFSU's investment policy that centers around human rights and aligns with international law.
SFSU Professor Valerie Francisco-Menchavez said the university has a history of anti-war activism, but that even this divestment agreement is huge.
"This is huge. We see, as faculty, what students can really do when they organize and stay united and have a just cause in mind, which is to stop the genocide in Palestine," Francisco-Menchavez said.
RELATED: SFSU president meets with pro-Palestinian student activists for open negotiation session
In a statement to ABC7 News, Lockheed Martin responded by saying, "We respect the right to peaceful protest and remain focused on supporting the U.S. government and its allies to deliver strategic deterrence and security solutions."
However, Professor Lonny Avi Brooks at Cal State East Bay said the move to divest is more of a symbolic win, since it likely will not change what's happening on the ground in Gaza.
"Divesting from Israel, that's not going to stop Israeli positions," Brooks said. "This type of divestment actually kind of fuels the fire to support the far-right Israeli settler colonial rhetoric of the Israeli government."
But Palestinian student Mahmood Ali said a win is a win.
"There is no victory in genocide. But it sets a precedent and sets an example for other schools that it is possible to divest and get these wins," said Ali, a civil engineering student. "If we don't speak for the Palestinians, then who will?"