Oction Labs mark
Oction Labs mark
Oction Labs

Sovereign AI for regulated Canada.

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

We are building the AI stack that public-sector and regulated buyers will be legally allowed to use: managed infrastructure, data they keep, compliance built in.

Oction Labs has not entered into any service or revenue contracts to date. Phase 0 infrastructure is live and buyer conversations are underway.

Oction AgencySovereign AI Infrastructure
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Our goal

We are building a stack around the two things regulated buyers cannot rent: the data lifecycle and the compliance framework.

Regulated and public-sector clients cannot legally hand citizen and patient data to OpenAI, Anthropic, or a US cloud. They still need AI. We are building the model to sell to them on infrastructure we control, in province, with an audit trail.

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OCTION LABS01 / Issue
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The issue

Regulated industries want AI and cannot legally buy what is on the market.

The gap: every vendor pitches "secure." None can prove sovereign infrastructure. Buyers want AI but cannot legally buy what is available.

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OCTION LABS02 / Plan
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Our plan

Three models on one vertically integrated stack. Each makes the next more defensible.

One line: we build the only AI stack regulated buyers are legally allowed to use.

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OCTION LABS02 / Plan
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Revenue model

Recurring by design. At our minimum base retainer, adding one client a month compounds into real run-rate inside a year, and most deployments bill well above base.

Recurring from day one
Even a 90-day pilot bills $12,500 per month plus a $50,000 setup, before Production
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 model at the minimum base retainer, held flat for clarity. Not a forecast or a commitment; actual contract values vary and most run higher.

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OCTION LABS03 / Market
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Where we start

Municipal government and healthcare are our starting focus. The same sovereign stack serves both, and healthcare is the higher-value, higher-defensibility wedge.

Sources: CMAJ / Unity Health Toronto (2024).

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The same stack, more regulated industries

Municipal and healthcare are where we start. The same sovereign architecture applies to any industry where data is regulated and cannot leave the building.

01
Financial services & insurance
Regulatory driverClient confidentiality, OSFI and SOC 2
Representative useOn-prem analysis of client, claims and risk data
02
Legal & professional services
Regulatory driverPrivilege and confidentiality obligations
Representative usePrivate document review and matter retrieval
03
Public safety & defense
Regulatory driverNIST 800-53, controlled supply chains
Representative useAuditable AI on restricted material, on site
04
Energy & critical infrastructure
Regulatory driverSovereignty and OT-security mandates
Representative useLocal AI over operational and inspection data
05
Education & research
Regulatory driverStudent-record (FIPPA) and research-IP rules
Representative useSovereign assistants over institutional knowledge
06
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
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The market

Four segments where regulated buyers need AI and have defined procurement paths to buy it.

Canadian municipal services
Predictable procurement, defined compliance, citizen-data rules
Regulated enterprise (health, finance, legal)
High-value, sticky workloads blocked from public cloud AI
Sovereign data assets
Permissioned operational data that cannot leave the premise
Government compute and grants
Public investment moving toward domestic, sovereign infrastructure

The demand signal is public: Canada Health Infoway's AI Scribe Program is the largest federally funded health AI deployment in Canadian history (10,554 clinicians enrolled, 708,654 encounters by Aug-Sep 2025). Regulated sectors are moving on AI now, and they need a stack they are legally allowed to use.

Sources: Canada Health Infoway (2025).

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OCTION LABS04 / Why it works
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Why now

Three forces open a 24 to 36 month window.

Miss the window and incumbents (Deloitte, CGI, IBM) fill it with overpriced, underperforming solutions.

Note: prior versions cited a specific power-draw multiplier for the compute hardware. We removed it pending a measured benchmark rather than ship an unverifiable claim.

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OCTION LABS04 / Why it works
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Traction

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

Honest framing: Oction Labs has not entered into any service or revenue contracts under the company to date. Conversations and pilots are in progress; no production enterprise contract is signed yet. We do not claim revenue we do not have.

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OCTION LABS04 / Why it works
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The data flywheel

Every Model 1 deployment makes Model 2 more valuable. Margins expand as we scale.

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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Competitive landscape

Compliance fluency times hardware control times data ownership equals no direct competitor.

01
Deloitte / CGI / Accenture
Their weaknessHigh hourly labor, long sales cycles
Our advantageFixed-price deliverables, short pilots
02
OpenAI / Anthropic / US cloud
Their weaknessCannot sign in-province data-residency on owned hardware
Our advantageIn-province, auditable, managed infrastructure
03
Local MSPs
Their weaknessNo AI depth, no knowledge graph
Our advantagePurpose-built automation layer plus memory stack
04
Internal IT teams
Their weaknessNo budget, talent, or compliance fluency
Our advantageWe are the outsourced sovereign-AI department
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OCTION LABS05 / Moat
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Why we win

The moat is structural, not feature-based.

Cloud AI vendors cannot follow us here without abandoning the cloud economics that define them.

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Team

A systems and infrastructure company run by operators, supported by always-on automation.

01
Brandon Gill
RoleCo-Founder / CEO
FocusSales, partnerships, capital strategy, government alignment
02
MJ Dewji
RoleCo-Founder
FocusStrategic oversight, capital deployment, long-term positioning
03
Leonel Garcia
RolePartner / COO (internal ops)
FocusInternal ops; healthcare delivery lead; clinical workflow validation and health-authority relationships
04
Shamir Cheema
RolePartner / CRO
FocusRevenue operations and commercial strategy
05
Augustin Gentile
RolePartner / Strategic partnerships and new business revenue
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The bet

Regulated AI is not a feature. It is a market, and it is up for grabs in the next 24 months.

We control the data lifecycle. We own the compliance framework. Clients own the infrastructure where required. Every competitor rents one of the three.

The companies that solve regulated, sovereign AI in the next two years will define the next decade of enterprise and public-sector infrastructure in Canada. We intend to be one of them.

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Where we are headed

From first deployments to a sovereign AI platform Canada owns.

Each step makes the next more defensible. The direction is one stack that regulated Canada can actually use, own, and trust.

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Get in touch

GET IN TOUCH

Let's talk.

We are building the sovereign AI layer for regulated Canadian infrastructure.

Brandon Gill
Co-Founder & CEO
brandon@octionagency.com
Leonel Garcia
Partner & COO (internal ops)
leonel@octionagency.com
MJ Dewji
Co-Founder
mj@octionagency.com
Shamir Cheema
Partner & CRO
Augustin Gentile
Partner - Strategic Partnerships & New Business Revenue