Mercedes-AMG PETRONAS F1 has officially signed a $60 million-a-year partnership with Microsoft to integrate AI into its 2026 title campaign. The deal, one of the most lucrative in the sport, moves Microsoft Azure to the heart of the team’s race operations.
F1 cars generate over 1.1 million data points per second, and Mercedes will now use Microsoft’s AI and Azure Kubernetes Service to run real-time simulations and model race strategies with unprecedented speed. As the sport enters a radical new era of electrification and active aerodynamics in 2026, the team aims to use this “cloud-first” approach to gain a critical edge over rivals like Red Bull and McLaren.
By scaling computing power on demand, Mercedes can now test virtual parts and optimize performance instantly, ensuring they remain at the sharp end of the grid while staying within the sport’s strict financial cost caps.
