The Mercedes Formula One team have agreed a multi-year partnership with technology giant Microsoft.
Key details:
- Microsoft Azure and its AI capabilities will be used to enhance Mercedes’ data tracking
- The technology will also allow the team to quickly test new parts without waiting for new on-premises infrastructure
- Azure Kubernetes Service (AKS) will allow Mercedes to scale computing power depending on demand, enabling technological advancements while ensuring compliance with financial regulations
- Mercedes to expand use of Microsoft 365 to enhance operational efficiency across the business
Context:
The partnership is worth in the region of US$60 million per season, according to Sky News, which would make it one of the most lucrative team sponsorships in Formula One.
Microsoft is securing a prominent advertising spot on the Mercedes car’s airbox, a position that was previously occupied by the team’s part-owner Ineos. This isn’t Microsoft’s first foray into the sport, as it has previously held deals with Alpine and its other guises as Renault and Lotus. Most recently, Microsoft promoted its Xbox games console and cloud computing platform Microsoft Azure with Alpine between 2023 and 2025.
The deal comes amid fierce competition between tech firms, with Formula One proving to be a prime platform for showcasing technological capabilities. Oracle has been Red Bull’s title sponsor since 2022, while Google’s extended partnership with McLaren puts its Gemini AI platform at the heart of the agreement. Ferrari, meanwhile, have a title partnership with HP, as well as pacts with IBM and Amazon Web Services (AWS), the latter of which is a global partner of Formula One, alongside Lenovo and Salesforce. Dell Technologies is also a partner of McLaren.
For Mercedes, this is their latest new partnership with a global brand ahead of the 2026 season, having announced a tie-up with PepsiCo in December.
Comment:
“Our sport is driven by those who lead through innovation,” said Toto Wolff, chief executive and team principal of Mercedes.
“We are delighted to partner with Microsoft, one of the world’s foremost technology leaders, whose name is synonymous with ground-breaking innovation. This partnership also reflects our commitment to staying at the forefront of performance and progress.
“By putting Microsoft’s technology at the centre 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.”
“This partnership puts Microsoft’s cloud and enterprise AI technologies at the heart of racing performance – where milliseconds matter and data determines outcomes,” added Judson Althoff, chief executive of Microsoft’s 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 – on and off the track.”
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