In the high-speed world of Formula 1, where every millisecond counts and technology reigns supreme, Mercedes-AMG PETRONAS has just announced a major partnership that has fans and experts talking. On January 22, 2026, the racing team revealed a multi-year deal with Microsoft that positions the tech giant at the center of their operations. The timing couldn’t be better, coming just before Mercedes unveils their W17 car for the 2026 season.
Mercedes-AMG PETRONAS partners with Microsoft in groundbreaking multi-year deal ahead of their 2026 W17 car reveal.
The partnership brings serious money to the table. Sky News reports the deal could be worth up to $60 million per season, making it one of the largest single team sponsorships in F1. Only Petronas at $75 million annually and Oracle Red Bull at $100 million rank higher. That’s the kind of investment that shows Microsoft means business in the racing world.
So what does Microsoft actually bring to the track? Their Azure cloud platform and artificial intelligence tools will help Mercedes analyze massive amounts of data faster than ever before. Think of it like having a super-smart assistant that can test thousands of car parts virtually before engineers even build them. The Azure Kubernetes Service scales computing power on demand, meaning the team can run complex simulations without waiting for their own computers to catch up. Microsoft will provide cloud and enterprise AI technologies to support the team’s operations. The deal also gives Mercedes access to low-latency compute resources to speed up real-time decision-making.
Team principal Toto Wolff expressed excitement about working with a company “synonymous with groundbreaking tech.” Microsoft executive Judson Althoff emphasized that “cloud and AI are at the heart of racing where milliseconds and data determine outcomes.” Both leaders see this partnership as vital for the 800 million F1 fans worldwide who crave innovation.
The competitive landscape shows tech companies racing into F1 just as fast as the cars themselves. Oracle sponsors Red Bull, Google partners with McLaren, and Ferrari works with HP and IBM. Microsoft previously sponsored Alpine but made the switch to Mercedes for this season.
The deal arrives perfectly timed for 2026 regulations focusing on electrification and sustainability. The collaboration between Microsoft and Mercedes-Benz actually builds on more than 30 years of prior work across the automotive industry. Whether this partnership delivers championship results remains to be seen, but one thing is certain: the race for technological advantage has never been more intense.
