KTM decided to enter MotoGP in the premier class of motorcycle road racing. In September 2014, Pit Beirer announced that KTM would start in MotoGP for 2017. A year and a half before their MotoGP debut, KTM tested their V4 engine for the first time, a configuration designed to use a steel trellis frame chassis. In October 2015, the KTM RC16 was track-tested for the first time at the Red Bull Ring with Alex Hofmann as the first test rider. The team conducted further testing at circuits including Circuit Ricardo Tormo, Circuito de Jerez, Brno Circuit, Misano World Circuit Marco Simoncelli, and Mugello Circuit with test riders Mika Kallio, Randy De Puniet, Karel Abraham, and Thomas Lüthi.
The team presented the RC16 to the public before the 2016 Austrian GP, with test riders Kallio and Hofmann doing laps. Mika Kallio had a wildcard entry for the 2016 Valencian GP aboard the RC16, making its official debut race in the MotoGP category. Kallio qualified 20th but retired due to a rear wheel sensor malfunction. Pol Espargaró and Bradley Smith tested the RC16 during the first official winter test after the 2016 season. KTM participated in official pre-season tests at Sepang International Circuit, Phillip Island Grand Prix Circuit, and Losail International Circuit before the 2017 season.
Red Bull KTM Factory Racing debuted in MotoGP in 2016 with the KTM RC16. The team made their debut in the MotoGP category at the 2017 Qatar motorcycle Grand Prix, scoring their first points in their second grand prix in Argentina. At the 2017 Czech Republic motorcycle Grand Prix, Espargaró finished 9th, which was the team's first top 10 in a MotoGP Grand Prix. The team achieved its first podium in 2017. At the 2018 Valencian Community motorcycle Grand Prix, KTM and Espargaró took their first podiums in the top class of motorcycle grand prix racing, with Smith finishing 8th. On 9 August 2020, KTM secured their first MotoGP win and first dry weather podium with Brad Binder at the Czech Grand Prix.
The KTM GP Academy was established as a talent filtering system to identify, support, and nurture prospects from development series such as the Red Bull MotoGP Rookies Cup, the Northern Talent Cup, and the Austrian Junior Cup. This factory-run structure, in cooperation with teams like Red Bull KTM Ajo and Red Bull KTM Tech3, aims to elevate athletes onto the MotoGP grid. Riders such as Brad Binder, Augusto Fernandez, Miguel Oliveira, and Remy Gardner have progressed through the KTM GP Academy, while Pedro Acosta has won two titles in three seasons of Grand Prix competition.
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