“The team do not condone any form of racism.”
The 21-year-old Estonian was relieved of all team duties on June 21. CNN has reached out to Vips for comment.
“I wish to unreservedly apologize for the offensive language used during a live gaming stream earlier today,” Vips wrote.
“This language is entirely unacceptable and does not portray the values and principles that I hold.
“I deeply regret my actions and this is not the example I wish to set. I will cooperate with the investigation fully.”
Earlier this year, he replaced Sergio Pérez to drive Red Bull’s F1 car in a practice session ahead of the Spanish Grand Prix.
Vips has been racing with the British-based Hitech GP team in Formula 2 this season and currently sits seventh in the standings, although his future with the team is unclear.
CNN has reached out to Hitech GP for comment.