While testing his new suit at Stark Industries, Tony is informed by his assistant Pepper Potts that armed men are attacking the facilities. J.A.R.V.I.S., Stark develops an updated and more powerful version of his armor, adding Stark Industries' new repulsor technology and flight capability. Upon being picked up by the Air Force and returning to the United States, Stark declares that his company will no longer manufacture weapons, a move disapproved by his business partner Obadiah Stane. Stark then escapes from the Ten Rings' caves, but his suit is destroyed when he crashlands in the desert.

Armed with a flamethrower, Stark uses the armor to defeat several terrorists and destroy their weapons stockpile, but Yinsen is killed during the escape. Stark impresses himself after finishing the armor, calling it 'the future'. During this time, Yinsen also acts as Stark's mentor, showing him humility and telling him of the horrors his company has caused, making Stark reconsider his life. Instead, he and fellow captive Ho Yinsen secretly build a powered suit of armor in the months following his capture. During a business trip to Afghanistan to demonstrate Stark Industries' new weapon, Tony Stark is kidnapped by the terrorist group the Ten Rings, who order him to build a missile for them.

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