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Microsoft science chief exits for Mercedes F1 AI role after 16 years

Peter Lee is set to leave Microsoft after 16 years and join Mercedes Formula 1 in a new AI advisor role. The move shows how the AI race is pulling senior talent beyond Silicon Valley and into industries where data, regulation, and speed now matter just as much as code.

NBBy Nathan BrooksCorrespondent, Business & Corporate
October 13, 2026, 7:05 AM ET

Peter Lee, the departing president of Microsoft Science, plans to join the Mercedes Formula 1 team in a newly created AI advisor role, according to Fortune. His exact title is still under discussion, but he is expected to join on a one-year contract with an option for a second.

Lee spent 16 years at Microsoft shaping the company’s science and research efforts. His work centered on how AI could help doctors and scientists solve hard problems in the physical, biological, and medical sciences. At Microsoft, he focused on diagnostics, precision medicine, and clinician tools.

At Mercedes, Lee said he will focus on four main goals: using AI to tackle physics problems for the car, breaking down organizational and data silos across departments, building financial and predictive data models, and advising the team on how the sport’s regulators might govern AI use.

Lee said he always wanted to be a racer and grew up racing carts. He also said he was 'completely thrilled' and 'in disbelief' that Mercedes would think of him for the job. The Mercedes team did not immediately respond to a request for comment.

The move comes amid a wave of departures from Microsoft this year as CEO Satya Nadella reorients the company to win the enterprise and cloud sides of AI. Among those leaving are Ryan Roslansky, an executive vice president who also served as LinkedIn CEO, and chief communications officer Frank X. Shaw. Earlier this year, longtime executives including gaming chief Phil Spencer and Rajesh Jha, executive vice president of experiences and devices, retired.

The broader market has already voted on what this means. AI is not staying inside one sector, and the best talent is being priced accordingly. When a company built around scientific research loses a long-tenured leader to a racing team, it is a sign that expertise now travels where leverage is highest.

That is the real story here: capital rewards clear rules, scarce skills, and fast decisions. Mercedes is not hiring Lee for symbolism. It is hiring for advantage. In the AI era, even Formula 1 is becoming a contest over data, prediction, and who can move fastest without breaking under the weight of complexity.

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