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Charlotte, NC – In a candid discussion on his "Actions Detrimental" podcast, 23XI Racing co-owner Denny Hamlin shed light on the intricate alliance with Joe Gibbs Racing (JGR) and how his team is leveraging shared resources to achieve on-track success, particularly in the opening stages of the 2026 NASCAR Cup Series season. The partnership, which sees 23XI Racing reportedly paying JGR approximately $8 million annually for technical data, is designed to foster mutual growth, but Hamlin emphasized that the information exchange is a two-way street.
"We’re always privy to what they’re doing, as well as they know what we’re doing," Hamlin stated on Monday’s episode, addressing the perceived performance disparity between the two affiliated organizations. This revelation comes amid a dominant start to the 2026 season for 23XI Racing, highlighted by driver Tyler Reddick’s impressive four victories in the first six races.
The question of how two teams with access to the same foundational technical data arrive at different setup strategies has become a focal point of discussion within the NASCAR community. Hamlin elaborated on the detailed process that leads to these divergent paths.
"It starts about a week and a half to two weeks in advance," Hamlin explained. "The teams will start coming up with a baseline setup. Like, ‘here’s the general shock, springs, weights of the car that we think is correct.’ And then as they run sim and simulation models, it will continue to evolve. As they get more information, it just starts to evolve. And then the drivers send the teams down a certain path of ‘what I want my car to do.’"
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This iterative process, driven by simulation data and driver feedback, appears to be where the critical deviations occur. Hamlin admitted to not always being fully aware of the extent of these differences until the race weekend itself. "So I think that we probably… I wasn’t aware that they were in a different place, like a far different place… far, far away from where we were until like the weekend. But again, we’re all just guessing." The acknowledgement of "guessing" underscores the inherent unpredictability in optimizing race car performance, even with extensive data.
When questioned about his personal engagement with JGR’s setup sheets, Hamlin indicated a focused approach on his own team’s needs. "I don’t look at setup sheets or anything like that," he said. "It’s always different for every team, certainly on any given week. I don’t have time to then, ‘Alright, I’ve locked in my setup, let me see what other people have come up with.’ I have done it post-race before and said, ‘Okay, that person was successful with that. Let me run that. Let me see what that feels like.’ That probably will happen today, but generally speaking, I just focus on what I need because at so many of these racetracks, I have a really good understanding of the feel that I need in my car to go win."
This personal philosophy of prioritizing his own car’s requirements, while acknowledging the potential for post-race analysis, suggests a confidence in his own team’s ability to interpret data and translate it into performance.
The current season’s statistics paint a compelling picture of 23XI Racing’s early dominance. Tyler Reddick’s four wins in the initial six events have placed him squarely in contention for the championship. His victories include:
- Daytona 500: Reddick secured a pivotal early-season win at the iconic Daytona International Speedway, setting a strong tone for his team.
- Las Vegas Motor Speedway: Demonstrating adaptability on a 1.5-mile oval, Reddick captured another checkered flag, showcasing the team’s capability across different track types.
- Martinsville Speedway: A surprise victory at the half-mile short track indicated a refined short-track program for 23XI Racing.
- Bristol Motor Speedway: Reddick continued his winning streak on the .533-mile concrete oval, further solidifying his team’s early-season supremacy.
In contrast, Joe Gibbs Racing, the parent organization and technical ally, has yet to secure a win in the 2026 season. While drivers like Hamlin, Martin Truex Jr., and Christopher Bell have shown flashes of speed and consistent top-10 finishes, the outright victories have eluded them. This statistical divergence, despite the shared technical resources, fuels the narrative that 23XI Racing has found a unique formula for translating data into race-winning performance.
The $8 million annual payment from 23XI Racing to JGR is a significant investment, reflecting the value placed on the technical alliance. This financial commitment underscores the strategic importance of the partnership for both organizations. For JGR, it provides a substantial revenue stream and a valuable R&D partner in 23XI. For 23XI, it grants access to JGR’s championship-winning infrastructure, engineering expertise, and a vast repository of historical and real-time data.
The core of the alliance lies in the technical data sharing. This typically encompasses chassis development, aerodynamic simulations, engine performance metrics, and race track data analysis. Both teams have access to the same wind tunnel data, CFD (Computational Fluid Dynamics) models, and simulation software. However, the implementation of this data is where individual team philosophies and driver preferences come into play.
Hamlin’s explanation highlights that the "guessing" phase, informed by simulations and driver feedback, is crucial. This suggests that while the raw data might be identical, the interpretation and application of that data, particularly concerning car setup—shock absorbers, spring rates, weight distribution, and aerodynamic packages—can lead to significant performance differences. Driver feedback is paramount in this process. A driver’s ability to communicate nuanced feelings about the car’s behavior—understeer, oversteer, tire grip, mechanical grip—directly influences the engineering decisions made during the setup process.
The early success of 23XI Racing can be attributed to a confluence of factors, including Reddick’s exceptional driving talent, the team’s ability to optimize their car’s performance through the setup process, and potentially, a more aggressive or innovative approach to data interpretation. The fact that Reddick has been able to win at diverse track types—from superspeedways to short tracks to intermediate ovals—indicates a well-rounded program that is not reliant on specific track characteristics.
Looking ahead, the NASCAR Cup Series season is long, and performance levels can shift. The competitive landscape is constantly evolving, with teams continuously seeking incremental gains. Joe Gibbs Racing, with its proven track record of success and championship pedigree, is undoubtedly working to understand and address the performance gap with its affiliate. The insights provided by Denny Hamlin suggest that the alliance, while beneficial, is not a guarantee of equal performance, and that the ultimate success on race day hinges on a team’s ability to refine and execute its strategy based on shared, yet individually interpreted, technical information. The dynamic between 23XI Racing and JGR serves as a compelling case study in modern motorsports, where data analytics, strategic partnerships, and driver input are intricately woven into the fabric of competition.
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