The project was announced on February 24, 2009, when former Haas CNC Racing technical director Ken Anderson and journalist Peter Windsor — previously a manager at Williams and Ferrari — appeared on the Speed Channel to reveal their intent to file an entry for the 2010 season. On June 12, 2009, the FIA formally granted US F1 entry to the championship. Political tensions between the FIA and the Formula One Teams Association during the summer of 2009 delayed the signing of the Concorde Agreement until July 29, 2009, creating early schedule pressures.
The team established its base of operations in Charlotte, North Carolina, in a building that had previously housed Joe Gibbs Racing's NASCAR operations, and announced plans for a secondary facility at Motorland Aragon in Spain to ease logistics during the European calendar.
US F1's stated ambition was to run two American drivers, reflecting Windsor and Anderson's broader goal of promoting American talent in the sport. That plan was later softened, with Windsor acknowledging that more experienced non-American drivers might be needed for the team's debut season. The team also pledged not to sign pay drivers.
Argentine driver Jose Maria Lopez announced a conditional deal to drive for the team in November 2009, contingent on securing an eight-million-dollar sponsorship package. By January 2010 the deal was reported as complete, and Lopez was officially announced on January 25, 2010. Former Honda test driver James Rossiter was also linked to the team, though this was never formally confirmed.
The chassis, designated the US F1 Type 1, was to use the Cosworth CA2010 engine. The team planned a distinctive approach, with senior engineer Scott Bennett stating the car would not be a design clone of existing machinery. US F1 was also reported to be the only new entrant for 2010 intending to produce its own gearbox, supplied by EMCO Gears. Investors included the advertising agency Goodby, Silverstein and Partners, while YouTube co-founder Chad Hurley was the team's primary financial backer.
By mid-February 2010, widespread reports emerged that the team was in imminent danger of folding after Hurley withdrew his investment. On February 20, Ken Anderson told the FIA that the team was seeking permission to miss the first four races and join the season at the Spanish Grand Prix. Within days, Swiss-based financial firm Locstein announced it was withdrawing from involvement after concluding the team could not participate in the full season.
Senior team personnel accused Windsor and Anderson of fundamental mismanagement, claiming that all decisions had to pass through Anderson before being approved, stalling the design and build process. Staff reportedly knew by December 2009 that the program was in serious trouble, though Windsor and Anderson were not made aware until February. FIA technical delegate Charlie Whiting inspected the Charlotte facility on February 24 and found the team was not capable of competing.
Talks were held between Chad Hurley and Stefan Grand Prix principal Zoran Stefanovic about a potential merger, but these were unsuccessful. Anderson and Hurley then formally requested that the FIA defer their entry to 2011, offering a seven-figure bond, but the FIA instead announced that the 2011 entry process would be fully reopened to all applicants.
On March 2, all team personnel were dismissed. Lopez was freed from his contract the day before the factory closed. The FIA updated the 2010 entry list on March 3, removing US F1 with a note that the team had indicated it would not be in a position to participate. The team permanently closed in April 2010, citing serious economic and funding challenges.
The FIA World Motor Sport Council held a disciplinary hearing on June 24, 2010, finding the team in breach of its obligations. US F1 was fined 309,000 euros plus the costs of the hearing and banned from competing in any FIA-sanctioned championship. Two trailers the team had purchased from Brawn GP for car transportation were later put up for sale on eBay by the UK High Court to satisfy a creditor claim.
A prospective successor organization called the Cypher Group, formed from former US F1 personnel but unconnected to Windsor or Anderson, briefly pursued an entry for 2011 before also withdrawing its application.