Oction Labs

Sovereign AI for regulated Canada.

This deck describes the target operating model we are building toward.

Managed infrastructure. Client-owned data. Compliance built in. The AI stack regulated Canada is allowed to use.

Pre-revenue. Phase 0 infrastructure live. Buyer conversations active.

Oction AgencySovereign AI Infrastructure

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Our goal

Regulated buyers cannot rent the data lifecycle or the compliance framework. We are building both.

They cannot hand citizen data to US cloud AI. They still need AI. We sell it on infrastructure we control, in province, with an audit trail.

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OCTION LABS01 / Issue

The issue

Regulated buyers want AI. The market is not legal to buy.

Municipal governmentprovincial law restricts cloud LLMs for citizen data.
HealthcarePrivacy law and the US CLOUD Act push patient data away from cross-border cloud.
Finance and legalConfidentiality rules block SaaS AI.
Public safetyNIST 800-53 mandates controlled supply chains.

Vendors pitch secure. Buyers need sovereign. Demand exists. Legal supply does not.

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OCTION LABS02 / Plan

Our plan

One vertically integrated stack. Three defensible models.

Phase 0 - grant-eligible proof of concept on client hardware. Validates sovereignty, compliance baseline, and procurement path.
Model 1 - bespoke software plus managed on-premise or co-located infrastructure. Client owns data. Compliance is built in.
Model 2 - permissioned operational data becomes licensable assets and APIs.
Model 3 - sovereign compute hubs for government co-location, multi-year contracts.

One line: we build the stack regulated buyers are legally allowed to buy.

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OCTION LABS02 / Plan

Revenue model

Recurring from day one. One client per month compounds into material run-rate. Most deployments bill above base.

Recurring from day one

90-day pilot: $12,500/month plus $50,000 setup.

Minimum base retainer

$25,000 per client per month, standard on-premise deployment

Cadence modeled

One new client per month, each retained on the base subscription

End of month 6

6 clients, $150,000 per month, about $1.8M annual run-rate

End of month 12

12 clients, $300,000 per month, about $3.6M annual run-rate

End of month 24

24 clients, $600,000 per month, about $7.2M annual run-rate

The upside

Multi-site deployments bill $80,000+ per month, several times base

Illustrative only. Not a forecast. Actual values vary; most run higher.

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OCTION LABS03 / Market

Where we start

Municipal and healthcare first. Same stack. Healthcare is the higher-value wedge.

Municipalpredictable procurement, faster first contracts. The proving ground.
Healthcarelarger contracts, switching costs, institutional support, and proven outcomes.
Healthcare motion detailed separately. One stack, multiple verticals.

Sources: CMAJ / Unity Health Toronto (2024).

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OCTION LABS03 / Market

The same stack, more regulated industries

The same architecture applies wherever regulated data cannot leave the building.

Financial services & insurance

Regulatory driverClient confidentiality, OSFI and SOC 2

Representative useOn-prem analysis of client, claims and risk data

Legal & professional services

Regulatory driverPrivilege and confidentiality obligations

Representative usePrivate document review and matter retrieval

Public safety & defense

Regulatory driverNIST 800-53, controlled supply chains

Representative useAuditable AI on restricted material, on site

Energy & critical infrastructure

Regulatory driverSovereignty and OT-security mandates

Representative useLocal AI over operational and inspection data

Education & research

Regulatory driverStudent-record (FIPPA) and research-IP rules

Representative useSovereign assistants over institutional knowledge

Federal & provincial government

Regulatory driverData-residency mandates beyond the municipal layer

Representative useThe same compliance-first stack at larger scale

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OCTION LABS03 / Market

The market

Four segments. Defined procurement paths. Regulated buyers already moving.

Canadian municipal services

Predictable procurement, citizen-data rules

Regulated enterprise (health, finance, legal)

High-value workloads blocked from public cloud AI

Sovereign data assets

Permissioned operational data

Government compute and grants

Public investment shifting to domestic sovereign infrastructure

Demand signal is public: Canada Health Infoway's AI Scribe Program is the largest federally funded health AI deployment in Canadian history. Regulated sectors are moving, and they need a legal stack.

Sources: Canada Health Infoway (2025).

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OCTION LABS04 / Why it works

Why now

Three forces open a 24-36 month window.

Regulatory urgencyNIST 800-53 Rev.5, provincial rules, and EU AI Act spillover.
Sovereignty pressurefederal strategy increasingly favors domestic AI scale-ups; public-sector buyers are actively moving off pure US cloud dependence.
Talent arbitrageCalgary and Edmonton AI ecosystems (Amii, University of Alberta) are under-recruited relative to Toronto and Vancouver.

Miss it and incumbents fill the gap with expensive, slow alternatives.

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OCTION LABS04 / Why it works

Traction

Built with no outside capital. A deployed systems company, not a science project.

Phase 0 reference buildGeotechnical knowledge assistant on Oction on-premise stack, validated in a regulated enterprise environment. Proof of concept, not a contract.
Autonomous automation layer operating 24/7 on dedicated hardware.
30,000+ knowledge chunks across triple-layer memory system.
Live infrastructurelocal proxy, memory API, vector store, cache - all healthy.
NIST 800-53 security framework implemented, documented, and audit-ready.
Current functionsengineering and logistics are operating under Oction Labs.
Active buyer pipelinemultiple Alberta municipal conversations and two SI relationships at pilot stage.

No service or revenue contracts to date. Conversations and pilots in progress. No production contract signed.

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OCTION LABS04 / Why it works

The data flywheel

Deployments produce data. Data becomes the next product. Margins expand.

Deploygenerate permissioned operational data.
Encodepatterns become reusable knowledge assets.
Modularizeproven configs become repeatable modules.
Licensedatasets and tuned weights become proprietary assets.

Year 1 looks like services. Year 3 looks like software plus data. The flywheel is the path from project margins to platform margins.

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OCTION LABS05 / Moat

Competitive landscape

Compliance fluency, hardware control, data ownership: no direct competitor.

Deloitte / CGI / Accenture

Weakness$300+/hour labor, six-month cycles

AdvantageFixed-price deliverables, short pilots

OpenAI / Anthropic / US cloud

WeaknessCannot sign in-province data-residency on owned hardware

AdvantageIn-province, auditable, managed infrastructure

Local MSPs

WeaknessNo AI depth, no knowledge graph

AdvantagePurpose-built automation layer plus memory stack

Internal IT teams

WeaknessNo budget, talent, or compliance fluency

AdvantageWe are the outsourced sovereign-AI department

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OCTION LABS05 / Moat

Why we win

Structural moat, not feature-based.

Operational control and data residency create switching cost.
Compliance fluency is a sales gate competitors cannot fake.
The data flywheel compoundseach deployment makes the next cheaper to deliver and the data layer more valuable.
Canadian-built and in-province is a procurement requirement, not a marketing line, for our buyers.

OpenAI / Anthropic / US cloud cannot follow us here without abandoning the cloud economics that define them.

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Team

Systems company run by operators, supported by always-on automation.

Brandon Gill

RoleCo-founder / CEO

FocusSales, partnerships, capital strategy, government alignment

MJ Dewji

RoleCo-founder

FocusStrategic oversight, capital deployment, long-term positioning

Leonel Garcia

RolePartner / COO

FocusInternal ops; healthcare delivery lead; clinical workflow validation and health-authority relationships

Shamir Cheema

RolePartner / CRO

FocusRevenue operations and commercial strategy

Augustin Gentile

RolePartner / Strategic partnerships and new business revenue

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The convergence

Regulated AI is a market, open in the next 24 months.

Data lifecycle, compliance, and infrastructure are converging inside regulated Canadian environments. We are building across all three layers.

The next 24 months will determine which platforms define Canadian infrastructure. We are not predicting the outcome. We are assembling the components that make Oction one of them.

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Where we are headed

From first deployments to a sovereign AI platform Canada owns.

Near termproduction deployments across municipal and regulated enterprise.
Buildinga proprietary, permissioned data layer that compounds.
Long termsovereign compute hubs keeping inference, data, and compliance in country.

One stack that regulated Canada can use, own, and trust.

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Get in touch

GET IN TOUCH

Let's talk.

Building the sovereign AI layer for regulated Canadian infrastructure.

Brandon Gill
Co-founder & CEO
brandon@octionagency.com

Leonel Garcia
Partner & COO
leonel@octionagency.com

MJ Dewji
Co-founder
mj@octionagency.com

Shamir Cheema
Partner & CRO

Augustin Gentile
Partner - Strategic Partnerships & New Business Revenue