The problem is the sloppy use of technical terms. MIPS means "millions of instructions per second" so the "p" is "per" and the "s" is "second". So it is natural for people to use FLOPS in the exact same way, but it is more correct for this to be "FLoating point OPerationS" where the "s" is used to indicate a plural.

That makes MIPS the equivalent of power (Watts) and FLOPS the equivalent of energy (Jouls). In that case limiting each Formula 1 team to a maximum of 25 teraflops of computation does make sense.

If instead you use teraflops as the equivalent of "trillion floating point operations per second" as many people do then it indeed makes less sense.