Mercedes is reportedly preparing to make a major statement off the track as it closes in on a significant new partnership with U.S. technology giant Microsoft – a move that underlines the team’s growing commercial clout heading into Formula 1’s transformative 2026 season.
According to a report from Sky News, the Brackley-based outfit is set to formally announce the deal during its 2026 launch on 22 January.
While figures have not been officially confirmed, the partnership is understood to be worth in the region of $60 million per year, placing it among the most lucrative sponsorship agreements in the sport.
If confirmed, the Microsoft collaboration would be another heavyweight addition to Mercedes’ expanding commercial portfolio, following its recent partnership with PepsiCo.
It also comes at a time when the team’s valuation – and the business of Formula 1 more broadly – is under intense spotlight.
F1 Teams Are Now 'Sustainable and Profitable'
Mercedes team principal Toto Wolff recently offered rare insight into the financial muscle behind modern Formula 1 outfits, speaking after selling 15% of his holdings in the team – which equates to 5% of the Brackley squad – to CrowdStrike CEO George Kurtz.
©Mercedes
The deal valued the team at a staggering £4.6 billion.
“I think it shows a good development because the teams have become sustainable and profitable,” Wolff told Sky Sports F1 in Las Vegas.
“It’s not just some valuation that has been taken out of the sky. When you look at our revenues and our cash flows, we are among the five, maybe three most profitable sports teams in the world, and this is where the valuations come from.
“It has been the work of many years and the sport being in a good place.”
That context helps explain why global tech giants like Microsoft are increasingly eager to align themselves with Formula 1 – particularly those at the sharp end of performance, innovation, and commercial return.
Read also: Mercedes’ lead designer John Owen set to depart team
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