Perplexity Tried to Sponsor an F1 Team, but Was Blocked by a Larger Tech Company.
Oracle prevented Perplexity from sponsoring a Formula 1 team.
The high-pressure competition of Formula 1 has become the stage where artificial intelligence companies are beginning to establish their presence. In this context, Perplexity, an AI-driven search startup, has been in talks to secure a sponsorship deal with Red Bull Racing, which would be valued at $5 million per year. However, this deal has been blocked by Oracle, the team's primary sponsor, according to sources close to the negotiations.
The central conflict lies in two important aspects. On one hand, Oracle is trying to acquire TikTok, and Perplexity presents itself as a competitor in this bidding process. Additionally, Oracle supports Stargate, an ambitious project valued at $500 billion aimed at building data centers for OpenAI, which represents direct competition for Perplexity.
It is noteworthy that any new sponsorship agreement with Red Bull Racing requires Oracle's approval, as they signed a five-year contract in 2022 valued at approximately $300 million, making it one of the most significant contracts in Formula 1. Both Oracle and Red Bull Racing have not responded to requests for comments on this situation. For its part, Perplexity also chose not to make any statements regarding the matter.
Formula 1 has previously seen partnerships with technology companies. For example, Google collaborates with McLaren, CrowdStrike has a deal with Mercedes-AMG Petronas, and Atlassian recently signed with Williams Racing.
For Perplexity, this sponsorship would have represented one of its first major collaborations and about 1 percent of the startup's most recent funding round. Recently, the company closed a funding round of $500 million, tripling its valuation to $9 billion.
