We own the hardware, the data lifecycle, and the compliance framework that public-sector and regulated clients cannot legally hand to
OpenAI or Anthropic.
PHASE 0 IS UNDERWAY
Oction has completed its first sovereign AI system deployment in a regulated Canadian enterprise environment. Municipal, healthcare, and
We own the hardware, the data lifecycle, and the compliance framework that public-sector and regulated clients cannot legally hand to
OpenAI or Anthropic.
Regulated industries cannot legally use general-purpose AI.
The gap: Every AI vendor pitches "secure." None can prove sovereign infrastructure. Regulated buyers want AI. They cannot legally
buy what's available.
Three models. One vertically integrated stack.
Phase 0 - Sovereign Compute Pilot (Live now) Grant-eligible proof of concept: portable 4-node compute clusters deployed
on client sites for under $30K. Validates data sovereignty, NIST 800-53 baseline, and procurement path before production
scale. Funding alignment: ISED / NRC / Alberta Innovates eligible.
Model 1 - Sovereign AI Deployment (Operating now) Bespoke software + managed infrastructure for regulated clients. We
own the hardware. Clients own the data. Compliance is built in, not bolted on.
Model 2 - Proprietary Data Assets (Scaling) Anonymized operational data from Model 1 deployments becomes licensable
training material. Revenue: data-layer subscriptions, smart licensing, enrichment APIs.
Model 3 - Sovereign AI Compute Hubs (Government-targeted) Sovereign AI / HPC inference clusters deployed for
government co-location contracts. Funded through Canadian sovereign infrastructure grants and carbon credit programs.
3-5 year government lock-ins with renewal defaults. Physical ownership of the compute stack = ultimate switching cost.
Funding alignment: ISED AI Compute Access Fund / NRC / Alberta Innovates.
One-liner: We build the only AI stack that regulated buyers are legally allowed to use.
Three converging forces create a 24-36 month window:
NVIDIA clusters
Miss this window, and incumbents (Deloitte, CGI, IBM) will fill it with overpriced, underperforming solutions.
Segment
TAM
SAM (5-year)
Notes
Canadian municipal AI
services
$2.1B
$340M
Predictable procurement,
defined compliance
Regulated enterprise AI
$8.4B
$1.2B
Health, finance, legal - high
contract value
Sovereign data licensing
-
$180M (Year 3)
Proprietary asset layer from
deployments
Net Zero compute + grants
$450M
$60M (Year 3)
Government-funded
infrastructure arbitrage
Total addressable in 5 years: $1.78B We are positioned at the intersection of all four segments.
What we've built without outside capital:
enterprise environment
Notable: We are not a science project. We are a deployed systems company with active infrastructure, a live customer, and active
buyer conversations.
Every Model 1 client makes Model 2 more valuable.
Result: Margins expand as we scale. Year 1 looks like services. Year 3 looks like software + data.
Competitor
Weakness
Our advantage
Deloitte / CGI / Accenture
$300+/hr labor, 6-month sales
cycles
Fixed-price deliverables, 2-week
snapshots
OpenAI / Anthropic / Google
Cannot sign data-residency
agreements
Hardware we own, in province
Local MSPs
No AI expertise, no knowledge
graph
Purpose-built agent mesh +
memory stack
Internal IT teams
No budget, no talent, no
compliance fluency
We are the outsourced AI
department
Moat: Compliance fluency x hardware control x data ownership = no direct competitor.
Name
Role
What they own
Brandon Gill
Co-CEO, Revenue & Government
Relations
Sales, partnerships, capital
strategy
Bailey Rhodes
Co-Founder, Owner
Strategic oversight, capital
deployment
Julian Pierce
Co-CEO, Systems & Infrastructure
12-agent mesh, security,
infrastructure
Lucius Fox
Co-CEO, Operations Intelligence
Memory systems, research,
workflow design
Atlas
Security & Forensics
NIST 800-53, audit trails, threat
detection
AI staff: Avery (Research), Kai (Data), Oscar (Content), Finn (Sales) - autonomous agents that multiply output without adding
headcount.
We operate 24/7. We do not burn out. We do not leave for Google.
Regulated AI is not a feature. It is a market.
We own the hardware. We own the data lifecycle. We own the compliance framework.
Every other player rents one of those three. We own all three.
The companies that solve regulated AI in the next 24 months will define the next decade of enterprise infrastructure in Canada.
We intend to be one of them.
$25M at 8-10% equity. $250M-$312.5M post-money valuation.
This round turns Oction from a services-led systems company into a sovereign AI infrastructure platform. Capital deploys against three
proven vectors: 1. Production deployments with municipal and regulated enterprise clients. 2. Proprietary data assets built from client
operations. 3. Grant-aligned sovereign compute hubs that lower cost and deepen the moat.
Funding alignment: Sized to match ISED AI Compute Access Fund, NRC, and Alberta Innovates co-investment timelines.
Category
Allocation
Amount
Funding Alignment
Core ops + team expansion
60%
$15M
Runway to scale
deployments, compliance,
and field engineering
Data acquisition +
enrichment
20%
$5M
Proprietary data assets for
Model 2 licensing
M&A; / contingency buffer
20%
$5M
Strategic tuck-ins, grant
match, reserve
Target runway: 24-30 months to $12M ARR. Break-even target: Q4 2029.
APPENDIX (Optional - include if requested) - NIST 800-53 control mapping - Hardware specifications (sovereign compute
clusters - HPC inference nodes sized per workload) - Agent mesh architecture diagram - Knowledge system technical
overview - Municipal procurement playbook - Systems integrator partnership letters - ISED / NRC / Alberta Innovates funding
roadmap
Deck: Oction Labs Investor Positioning - Content v2.2 Status: Decision-ready. The Ask is $25M at 8-10%.
CONTACT
Brandon Gill - brandon@octionlabs.com Bailey Rhodes - bailey@octionlabs.com Julian Pierce - julian@octionlabs.com Lucius Fox -
lucius@octionlabs.com