Microsoft's AI Hits The Track With Mercedes In F1 Shake-Up

By Lekha Gupta | January 22, 2026, 5:56 AM

On Thursday, Microsoft Corporation (NASDAQ:MSFT) disclosed a multi-year deal with Mercedes-AMG PETRONAS Formula One Team to integrate Microsoft's technology across the team's racing operations.

Details

The collaboration is focused on improving efficiency, advancing innovation to enhance on-track performance, and elevating the experience for Formula 1's global fan base of more than 800 million.

The sweeping Formula 1 rule changes set for 2026 mark a major shift for the sport, emphasizing greater electrification, efficiency, and sustainability in one of its most significant technical overhauls to date.

As Mercedes-AMG PETRONAS prepares for this new era, the team is working with Microsoft to deploy its cloud and enterprise AI capabilities across operations, supporting performance and innovation from the factory floor to race day.

Microsoft Azure and AI will scale the team's computing and data capabilities at the factory and track, powering simulations, performance analysis, and race strategy with real-time insights.

Management Commentary

Toto Wolff, CEO and Team Principal, Mercedes-AMG PETRONAS F1 Team stated, “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.”

Judson Althoff, CEO, Microsoft commercial business, added, “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.”

MSFT Price Action: Microsoft shares were up 1.10% at $449.00 during premarket trading on Thursday, according to Benzinga Pro data.

Image via Shutterstock

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