Formula 1 Rumor: Mercedes F1 poised to sign big deal with Microsoft (Update)
This rumor is upgraded to ‘fact’ today. Mercedes-AMG PETRONAS F1 Team and Microsoft Corp. today announced a multi-year partnership that puts Microsoft’s technologies at the heart of race team operations. Through this new collaboration, the companies aim to drive efficiencies and innovations that will help drive performance and amplify the excitement for the more than 800 million Formula 1 fans worldwide.
The 2026 Formula 1 regulation changes usher in a new era of racing for the sport, with increased electrification, efficiency, and sustainability, representing one of the most significant technical evolutions in modern Formula 1 history. As the Mercedes-AMG PETRONAS F1 Team prepares for this transformation, it is partnering with Microsoft to harness the power of its trusted cloud and enterprise AI technologies across the business, from the factory to the racetrack.
“Our sport is driven by those who lead through innovation,” said Toto Wolff, CEO and Team Principal, Mercedes-AMG PETRONAS F1 Team. “We are delighted to partner with Microsoft, one of the world’s foremost technology leaders, whose name is synonymous with groundbreaking innovation. This partnership also reflects our commitment to staying at the forefront of performance and progress. By putting Microsoft’s technology at the center of how we operate as a team, we will create faster insights, smarter collaboration and new ways of working as we look ahead to the next generation in F1.”
In a sport where races are decided by tenths of a second and every decision is data driven, Formula 1 represents the ultimate stress test for modern enterprise systems: extreme data volumes, real-time decision making, global operations and zero margin for error. United by the belief that technology is a competitive advantage, Microsoft and the Mercedes-AMG PETRONAS F1 Team will look to set a new standard for how enterprise technology drives performance at the highest levels of competition.
“This partnership puts Microsoft’s cloud and enterprise AI technologies at the heart of racing performance, where milliseconds matter and data determines outcomes,” said Judson Althoff, CEO, Microsoft commercial business. “Together with the Mercedes-AMG PETRONAS F1 Team, we are harnessing data and turning it into real-time intelligence that powers faster decisions, smarter strategies, and sustained competitive advantage both on and off the track.”
Racing at the speed of data
Modern Formula 1 cars are defined by precision and pace. Each Mercedes-AMG PETRONAS F1 Team car carries more than 400 sensors, generating over 1.1 million data points per second. From tire degradation and aerodynamic behaviour to Energy Recovery System deployment and evolving track conditions, every variable must be interpreted in real time.
Microsoft Azure and its AI capabilities will expand the Team’s existing high-performance computing and data capabilities, both at the factory and trackside, with scalable cloud and AI resources supporting simulation workloads, performance analysis, race strategy modelling and cross-team analytics. The flexibility and agility of this platform will help ensure engineers and strategists have real-time insights available at the moments that matter most.
“It is a privilege to welcome Microsoft into the Mercedes-AMG PETRONAS F1 Team partner ecosystem,” said Richard Sanders, Chief Commercial Officer, Mercedes-AMG PETRONAS F1 Team. “Microsoft’s technology already plays a central role in how we operate as a business, and this partnership opens new opportunities to innovate as we look toward the next era of technological development. I look forward to seeing how our teams collaborate to unlock new ways of working across the organization.”
Fuelling human ambition
Microsoft 365 and GitHub already underpin many of the Mercedes-AMG PETRONAS F1 Team’s engineering and operational workflows across its headquarters in Brackley and Brixworth, as well as trackside in the paddock. Building on this foundation, the team will expand its use of Microsoft 365 to unlock new levels of agility, accelerate innovation and enhance operational efficiency across the business.
Microsoft’s GitHub development tools and platforms help engineers innovate faster, optimize performance, and push the boundaries of design, modeling, and simulation. Going forward, the team’s engineering, simulation, and software development groups will deepen their integration of GitHub to modernize and accelerate development workflows, enabling greater consistency, speed, and efficiency.
Scaling for performance
Working with Microsoft Azure to accelerate AI technology experimentation and scale, the Mercedes-AMG PETRONAS F1 Team used real-time sensor data and Azure cloud tools to pilot intelligent virtual sensors, enabling rapid testing without waiting for new on-premises infrastructure.
With Azure Kubernetes Service (AKS), they were able to easily adjust computing power, scaling up when demand is high and down when it’s not, delivering meaningful technological advancements while meeting strict financial and regulatory requirements.
From road to track
For more than 30 years, Microsoft and Mercedes-Benz have collaborated across the automotive value chain, from AI-powered smart factories and electric vehicle telemetry to onboard vehicle intelligence and cloud-enabled engineering systems. From the factory floor to Formula 1, this new partnership builds on that foundation, bringing the same innovation mindset and digital capabilities into the world’s premier motorsport.
January 21, 2026
In a significant boost for the Mercedes-AMG Petronas Formula One Team, rumors indicate that the Brackley-based squad is on the verge of announcing a major sponsorship agreement with tech behemoth Microsoft. The deal, valued at approximately $60 million per year, is expected to be revealed during the team’s 2026 car launch event on January 22, underscoring F1’s increasing allure to global technology giants.
–by Mark Cipolloni–
The partnership comes at a pivotal time for Mercedes, who finished second in the 2025 constructors’ championship but have not claimed the title since 2021. Led by team principal and CEO Toto Wolff, the outfit recently sold a 15% stake to CrowdStrike CEO George Kurtz, valuing the team at over £4.6 billion—a record high for the sport. This new alliance with Microsoft, the world’s most valuable company at $3.4 trillion, highlights the team’s financial strength and its appeal to high-profile sponsors.
According to industry experts, the sponsorship could rank among the largest individual team deals in Formula One history. It follows a trend of tech firms investing heavily in the sport, such as Google’s ongoing partnership with reigning champions McLaren Racing. While details on the exact scope and duration remain under wraps, the agreement is anticipated to enhance Mercedes’ technological edge, potentially leveraging Microsoft’s expertise in areas like data analytics and cybersecurity—especially given Microsoft’s prior collaboration with CrowdStrike on cyber threat detection.
The announcement will coincide with the unveiling of Mercedes’ 2026 livery and car design, ahead of a season featuring new chassis and engine regulations. The team will field British driver George Russell alongside promising rookie Kimi Antonelli, with long-time car designer John Owen stepping down during the year. Wolff has emphasized the team’s profitability, positioning it as one of the most financially robust in global sports.
Social media buzz, including posts from F1 enthusiasts and journalists, has amplified the news, with many linking back to the initial Sky News report. Neither Microsoft nor Mercedes has commented officially, but the deal aligns with F1’s broader sponsorship landscape, where brands like Qatar Airways, LVMH, and PepsiCo have secured prominent global partnerships.
As the 2026 season opener in Australia approaches on March 8, this sponsorship could provide Mercedes with the resources needed to challenge for the top spot once more. With Audi entering the grid via their takeover of Sauber and other teams like Williams voicing concerns over engine narratives, the competitive landscape is heating up. For now, all eyes are on tomorrow’s launch, where the Microsoft-Mercedes tie-up is set to steal the spotlight.