According to a rumor, Oracle, one of the biggest sponsors in Formula 1, is blocking a $5 million sponsorship deal with Red Bull Racing.
When technology and Formula 1 come together, it often results in spectacular alliances. But this time, it’s a behind-the-scenes battle making headlines. Red Bull Racing, the team of world champion Max Verstappen, saw a potential sponsorship deal with an AI company fall through. The reason? The intervention of its main sponsor, Oracle.
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An AI Sponsor in Formula 1?
Perplexity, a startup specializing in research powered by artificial intelligence, was in advanced talks to become a sponsor of Red Bull Racing. The deal, estimated at $5 million per year, seemed on the verge of being signed. The company wanted to boost its visibility by partnering with one of the most prestigious teams on the Formula 1 grid. But things did not go as planned. Oracle, the main sponsor of Red Bull Racing since 2022 with a contract valued at $300 million over five years, has a say in the team’s new partnerships. And it appears that the deal with Perplexity did not meet the technological giant’s approval.
Conflicting interests in the background
Why did Oracle veto the deal? Two main reasons explain this decision. First, Oracle and Perplexity are in direct competition for the acquisition of TikTok. The highly coveted video-sharing platform is the subject of multiple offers, and Perplexity’s presence on Red Bull’s race cars could have created a conflict of interest. Second, Oracle is a major supporter of the Stargate project, a colossal $500 billion initiative aimed at building data centers for OpenAI. And OpenAI is in direct competition with Perplexity in the field of artificial intelligence. Supporting a competitor of its own strategic partners was clearly not an option for Oracle.
Implications for Formula 1 and tech sponsors
This situation highlights the growing influence of technology companies in Formula 1. Partnerships like Google’s with McLaren or CrowdStrike’s with Mercedes show that technology is becoming increasingly present in the paddocks. Perplexity’s aborted attempt with Red Bull Racing would have been one of the first major sponsorship deals for this young startup, founded less than three years ago and already valued at $9 billion. Although neither Red Bull Racing, Oracle, nor Perplexity have publicly commented on the matter, it raises questions about how sponsors can influence the strategic decisions of F1 teams. For Red Bull, it’s a delicate balance: attracting new sponsors while respecting the interests of its current partners.
This article explores Perplexity’s attempt to sponsor Red Bull Racing, thwarted by Oracle for strategic reasons. This situation illustrates the growing impact of technology companies in Formula 1 and the complex challenges of sponsorships in a sport where competition often goes beyond the track. Between commercial alliances and technological rivalries, F1 is more than ever a playground for industry giants.
Image: © Red Bull Content pool
Source: The Verge
