Microsoft and the Mercedes-AMG PETRONAS Formula One team have signed a multiyear partnership to deploy cloud computing and artificial intelligence tools across the team’s racing and factory operations, as Formula One prepares for sweeping technical regulation changes in 2026.
The agreement will see Microsoft’s cloud and enterprise software technologies embedded across the team’s engineering, simulation, race strategy and operational workflows, spanning its factories in Britain and trackside operations during race weekends.
The partnership comes as Formula One introduces new rules in 2026 aimed at increased electrification, efficiency and sustainability, one of the most significant technical resets in the sport’s recent history.
Mercedes team principal Toto Wolff said the collaboration was intended to support faster decision-making and new ways of working as the team adapts to the regulatory changes.
In Formula One, where races can be decided by fractions of a second, teams rely on large volumes of real-time data to guide strategy and car performance. Mercedes said each of its cars carries more than 400 sensors, generating more than one million data points per second, covering variables such as tyre wear, energy recovery and track conditions.
Microsoft said its Azure cloud platform and artificial intelligence tools would be used to expand the team’s existing high-performance computing capabilities, supporting simulation workloads, performance analysis and race strategy modelling at both the factory and the circuit.
Judson Althoff, CEO of Microsoft’s commercial business, said the partnership would focus on turning data into real-time insights to support operational decisions in high-pressure environments.
“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,” Althoff said.
Mercedes already uses Microsoft software
Mercedes already uses Microsoft software, including Microsoft 365 and GitHub, across its engineering and operational teams. Under the new agreement, the team plans to deepen its use of these tools to streamline collaboration, software development and simulation workflows.
The companies said the partnership would also allow Mercedes to scale computing resources more flexibly using cloud infrastructure, enabling engineers to test and deploy new technologies without relying solely on on-premises systems.
Microsoft and Mercedes-Benz have worked together for decades on automotive and manufacturing technologies, including factory systems and vehicle data platforms. The Formula One partnership extends that relationship into motorsport at a time when teams are increasingly relying on software, data and computing power as competitive differentiators.
Financial terms of the partnership were not disclosed.
