Calgary-based artificial intelligence company Denvr has secured two significant defence contracts with Ottawa firms, marking a major step forward in Canada's push for sovereign AI technology capabilities.
The partnerships involve Dominion Dynamics, which will develop advanced simulation environments for unmanned drone training, and Sapper Labs, which will deliver AI-powered intelligence and cyber defence solutions for the Canadian Armed Forces.
Both deals will utilize Denvr's Canada AI Platform (CAIP), a fully sovereign AI infrastructure that operates entirely within Canadian jurisdiction. This approach ensures sensitive defence data and operations remain under Canadian control rather than relying on foreign-owned cloud services.
Drone Simulation Breakthrough
Dominion Dynamics will leverage CAIP to create sophisticated training simulations for autonomous collaborative platforms (ACPs) – essentially unmanned drones designed to work alongside piloted aircraft. The simulation environment will help the Royal Canadian Air Force test various operational scenarios without the costs and risks of real-world training.
"We can iterate and test far faster than we ever could in the real world," said Eliot Pence, CEO and founder of Dominion Dynamics.
The simulation system will allow operators to test critical variables including propulsion speed, altitude limits, and endurance capabilities across different mission types. This data will be crucial for understanding how ACP systems perform under various conditions.
Dominion expects to have its simulation environment operational within three months, with full drone capabilities coming online in 24 to 30 months.
Strengthening Cyber Defence
Meanwhile, Sapper Labs will integrate its intelligence and cyber defence applications directly into CAIP's architecture, enhancing the platform's security capabilities and creating what officials describe as a "fully sovereign, Canadian-owned AI intelligence ecosystem."
"That expertise is exactly what the Canada AI Platform needs—not just as an application on top of the platform, but built into its foundations," said Geoff Gordon, Denvr's CEO.
The enhanced security features will benefit all of Denvr's defence partners, including the drone simulation work being conducted by Dominion Dynamics.
Strategic Defence Investment
These partnerships follow Dominion's recent announcement of a $50-million investment in autonomous drone development. The companies say their work will contribute to NORAD modernization efforts, Arctic defence capabilities, and overall Canadian Armed Forces readiness.
"Dominion Dynamics is building something remarkable—an autonomous wingman capability from the ground up, by Canadians for Canada's security," Gordon said. "The Canada AI Platform was built for exactly this purpose: a sovereign AI platform, designed to Canadian defence standards, operating entirely under Canadian jurisdiction."
Both companies are working closely with the Canadian Armed Forces throughout the development process, ensuring the final systems meet military operational requirements.
The deals represent a significant win for Calgary's growing technology sector and demonstrate Alberta's increasing role in Canada's defence and AI industries.
Information from BetaKit was used in this report. Original reporting can be found at BetaKit.com.
