ARCAS
Autonomous Resilient Closed AI Systems
Sovereign AI Infrastructure for Regulated Enterprises
The Lee AI Center · June 2026
Aidan Condari · Rachel Picco · Chloe Foo · Amanda Condari · Sophia Foo
The Crisis: When Enterprise Data Meets Public AI
Between 2023 and 2026, a cascade of real-world incidents demonstrated that enterprises face existential data exposure risk every time an employee sends proprietary information into a public AI interface.
Case Study — Samsung Electronics (April 2023)
Engineers at Samsung’s semiconductor division used ChatGPT for three separate tasks across a 20-day window: proprietary source code for a memory chip database, equipment fault detection code, and an internal strategy meeting summary. All three interactions were submitted to OpenAI’s servers and became potential training data. Samsung could not retrieve, delete, or quarantine any of it. Estimated competitive damage: hundreds of millions of dollars in chip manufacturing IP.
Average US data breach cost (2025)
Additional cost from Shadow AI usage
Major banks that banned public AI
Wall Street’s Mass Ban on Public AI
| Institution | Action Taken |
|---|---|
| JPMorgan Chase | Full ban on public ChatGPT |
| Goldman Sachs | Automated restriction on all third-party AI |
| Citigroup | Restricted access globally |
| Deutsche Bank | Complete ChatGPT disablement |
| Wells Fargo | Usage limits imposed |
| Bank of America | Restricted third-party AI access |
The Shadow AI Threat
Even enterprises with enterprise-tier AI agreements face shadow AI risk: employees routinely use personal accounts on free consumer AI tiers for work tasks, bypassing all controls. The only technically complete solution is a closed, internal AI environment — which is exactly what ARCAS provides.
The ARCAS Solution
ARCAS is a sovereign AI infrastructure platform that deploys enterprise-grade artificial intelligence entirely within a client’s own physical or co-location environment, eliminating all third-party data exposure.
Built on NVIDIA’s Blackwell-generation hardware and open-weight large language models, ARCAS provides the computational power of frontier AI without surrendering control of proprietary data, intellectual property, or regulated personal information to any external cloud.
Sovereign Data Infrastructure
Isolated, air-gapped storage with dual-redundancy backups, owned and operated for each client in a dedicated environment.
Zero Data Egress
No data leaves your environment. Ever. No third-party API keys. No shared model training. Complete data sovereignty.
NVIDIA-Accelerated Compute
Blackwell-generation GPUs running open-weight LLMs fine-tuned on your data. Enterprise-grade performance without compromise.
Outcome-Based Pricing
Pay per business result, not per token. A contract review costs $12. A resolved ticket costs $0.45. Predictable, measurable ROI.
OpenAI-Compatible Gateway
Single API endpoint compatible with existing tooling. Intelligent model routing, full audit logging, seamless integration.
Regulatory Compliance Built-In
Immutable audit logs, model documentation, and data isolation satisfy EU AI Act, DORA, GDPR, HIPAA, and FFIEC requirements.
Market Opportunity
ARCAS operates at the intersection of three large and independently growing markets: sovereign AI infrastructure, managed AI services, and regulated-industry AI compliance tooling. No incumbent serves all three simultaneously.
Market Growth Trajectory
| Segment | 2025 Value | 2035 Projection | CAGR |
|---|---|---|---|
| Sovereign AI Infrastructure (TAM) | $61.4B | $725B | 28% |
| North America (40%) | $24.6B | $290B | 28% |
| ARCAS Core Market (Regulated, NA) | $8.6B | $101.5B | 28% |
Why Now?
Regulatory Deadline Pressure
EU AI Act high-risk requirements hit full enforcement in August 2026. DORA activated January 2025. Enterprises must demonstrate AI governance now.
Open-Source Model Parity
89% of enterprises now use open-source AI models. Llama 4 Maverick matches GPT-5.3 on code tasks. No quality penalty for privacy.
Samsung Moment Awareness
The Samsung incident is now a canonical case study. CISOs and General Counsels actively seek solutions to shadow AI.
Hardware Pricing Maturation
NVIDIA Blackwell hardware is now available. A production-grade private AI cluster costs $500K–$4M — justifiable against breach risk.
Technology Stack
ARCAS is built on NVIDIA’s Blackwell-generation hardware, providing the most mature enterprise deployment tooling for self-hosted LLMs. The NVIDIA AI Enterprise software stack delivers SLA-backed support, model versioning guarantees, and security hardening not available in commodity GPU deployments.
Infrastructure Architecture
Compute
- ▸NVIDIA H100 80GB SXM5
- ▸NVIDIA L40S 48GB
- ▸AMD EPYC 9554 Hosts
Storage
- ▸92 TB NVMe (hot tier)
- ▸360 TB SAS Archive
- ▸RAID6 + dual redundancy
Network
- ▸100GbE leaf pair (MLAG)
- ▸ConnectX-7 200GbE NICs
- ▸RoCEv2 RDMA fabric
Power & Cooling
- ▸Dual 30A 208V feeds
- ▸Rear-door heat exchangers
- ▸N+1 cooling redundancy
Open-Weight AI Models
| Model | Provider | Best For |
|---|---|---|
| Llama 4 Maverick | Meta | Code review, document analysis, long-context RAG |
| Nemotron-Ultra | NVIDIA | Primary enterprise reasoning workloads |
| Mistral Large 2 | Mistral | Multilingual finance/legal, 80+ languages |
| Qwen 3 235B | Alibaba | High-complexity analysis, multi-step agentic tasks |
| Gemma 4 (27B) | High-volume, lower-complexity, cost-optimized |
Business Model
ARCAS operates as a dual-layer platform. The two layers are sold together as an integrated service, but each creates independent, recurring value.
Layer 1: Sovereign Data
Dedicated isolated storage with dual-redundancy backup. Client data ingested, indexed, and stored exclusively in air-gapped environment.
Layer 2: Private AI Services
NVIDIA-accelerated inference running open-weight models fine-tuned on client data. Physically isolated from all other clients.
Outcome-Based Pricing — The ARCAS Differentiator
Every major competitor bills by token or by request. ARCAS bills by outcome. Each outcome is pre-defined, tested, and priced. The client knows in advance exactly what each AI action will cost.
| Outcome | Unit | ARCAS Price |
|---|---|---|
| Blog post — 500 words | Per post | $0.22 |
| Blog post — 2,000 words | Per post | $0.75 |
| Call centre: ticket resolution | Per ticket | $0.45 |
| Trip booking (research + draft) | Per booking | $1.80 |
| Contract review — standard | Per document | $12.00 |
| Contract review — complex | Per document | $45.00 |
| RAG query — single answer | Per answer | $0.08 |
| Monthly base infrastructure | Per client/mo | $4,500+ |
Financial Projections
Revenue & Client Growth
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Total Revenue (USD M) | $1.02 | $4.22 | $12.80 | $33.62 | $67.63 |
| Cumulative Clients | 4 | 12 | 26 | 51 | 85 |
| Gross Margin | 62% | 66% | 70% | 73% | 75% |
| ARR at Year-End (USD M) | $0.82 | $3.77 | $11.72 | $31.59 | $63.53 |
| Valuation @ 25x ARR | $20.5M | $94.3M | $293M | $789M | $1.59B |
Implied Valuation (ARR Multiple)
Regulatory Compliance
The regulatory environment for AI in 2025–2026 has created a decisive forcing function. Enterprises in regulated industries face a convergence of compliance requirements that make public AI services legally risky for any business-critical purpose.
ARCAS provides the cleanest compliance story: the AI never leaves your environment. No third-party data processing, no cross-border data flows, no shared model training, and a complete immutable audit trail.
EU AI Act
EU — High-risk AI
Obligation
Documented risk management, bias-assessed data, immutable audit logs, human override.
ARCAS Response
ARCAS’s audit logs and model documentation satisfy all Annex III obligations.
DORA
EU Financial Services
Obligation
AI vendors are ICT third-party providers. Must audit, manage concentration risk.
ARCAS Response
ARCAS eliminates DORA third-party ICT risk entirely — AI runs on client-dedicated hardware.
GDPR
EU — Personal Data
Obligation
Lawful basis for AI processing. Data subject rights must be technically enforceable.
ARCAS Response
Isolated storage enables true data subject erasure — never existed in global training data.
HIPAA
US — Healthcare
Obligation
PHI cannot be processed by third-party AI without BAA and full audit rights.
ARCAS Response
Dedicated environment satisfies minimum necessary standard with full audit rights.
FFIEC / SR 11-7
US — Banking
Obligation
Full documentation of model development, validation, and ongoing monitoring.
ARCAS Response
Open-weight models can be fully documented, versioned, validated, and replaced.
The Team
ARCAS is named in honor of its five founders — four names, five letters — whose initials form the name: Aidan, Rachel, Chloe, Amanda, Sophia.
The Name: ARCAS — A Living Mythology
In Greek mythology, Arcas was the son of Zeus and the nymph Callisto. Arcas became the constellation Ursa Minor. His tail is anchored to Polaris — the North Star — the one fixed, unmoving point around which the entire night sky revolves.
This is what ARCAS offers the modern enterprise: certainty in motion. In a world of shifting AI regulations, unpredictable vendor policies, and data breach risk, ARCAS is the fixed point. Your data does not move. Your models do not leave. Your outcomes are not subject to a third party’s policy change.
In Latin and Spanish, ‘arca’ means a chest, a vault — the strongbox where the most valuable things are kept.ARCAS — The Vault of Intelligence.
Aidan Condari
Co-Founder
Rachel Picco
Co-Founder
Chloe Foo
Co-Founder
Amanda Condari
Co-Founder
Sophia Foo
Co-Founder
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