The R8R project began in 1997 when Audi commenced research into competing at Le Mans. The first prototype was displayed publicly in 1998, featuring a distinctive open-cockpit design incorporating numerous Audi styling cues. The car was powered by a 3.6-litre twin-turbocharged V8 engine and featured prominent aerodynamic vents in the nose, high sidepods with NACA ducts to feed the turbochargers, and a large vent on the side to extract air from the front wheel well.
By the time the car made its competitive debut at the 1999 12 Hours of Sebring, its aerodynamics had evolved considerably. A longer tail, more subtly curved wheel arches, and a lower, cleaner front end replaced the more stylised original bodywork. Following Sebring, further development produced a wider and more curved sidepod design. The NACA ducts were replaced by a vertical air inlet emerging from the side fender, and the tail was shortened. The car was estimated to produce approximately 610 hp (450 kW) from its V8 engine, achieving a top speed of around 335 km/h at Le Mans in 1999.
Alongside the open-cockpit R8R, Audi simultaneously developed the closed-cockpit Audi R8C, which was built in Britain. Chassis numbers 204 and 205 competed at Sebring only; 307 and 308 ran at Le Mans; 306 was added in 2000 for American Le Mans Series rounds.
The R8R made its racing debut at the 1999 12 Hours of Sebring, run by Joest Racing of Germany. Two cars qualified in 11th and 12th positions but showed strong reliability during the race, outlasting faster competitors. Despite the new BMW V12 LMR proving superior in pace, the R8Rs recovered to finish 3rd and 5th overall.
At Le Mans pre-race testing in May 1999, the Audis recorded the 8th and 11th fastest lap times, outpacing competitors including Mercedes-Benz and Nissan. At the 1999 24 Hours of Le Mans, the two R8Rs qualified 9th and 11th but again leveraged reliability against the rest of the field. Mercedes-Benz, Toyota, Panoz, Nissan, and BMW all experienced difficulties, allowing the R8Rs to advance and finish 3rd and 4th overall — beaten only by a single BMW and one of the Toyota GT-Ones.
When the new Audi R8 was completed for the 2000 season, it was sent to Europe for further Le Mans testing after its Sebring debut. This left the older R8R to contest the next two rounds of the American Le Mans Series — the Grand Prix of Charlotte and the Silverstone 500. At Charlotte, one R8R finished 6th behind the BMW and Panoz entries while the second car retired with mechanical problems. At Silverstone, both R8Rs reached the podium again with 3rd and 4th places, beaten once more by BMW and Panoz. Following Silverstone, the R8Rs were permanently retired.
The R8R delivered vital engineering and operational knowledge to Audi's Le Mans programme. Following Le Mans 1999, Audi cancelled the rival R8C, which had failed to finish and shown inferior pace. The R8R's lessons were incorporated into the Audi R8, a completely new prototype sharing only engine architecture with the R8R, which went on to achieve multiple victories at the 24 Hours of Le Mans from its debut.