While racing in a desert with War Machine (James “Rhodey” Rhodes), Iron Man is ambushed by a mysterious new enemy who tries to destroy Tony Stark’s new security satellite, “The Howard”. War Machine is killed in the struggle and Iron Man sets out for revenge. He is intercepted by S.H.I.E.L.D. and Nick Fury who needs to talk to him. He escapes and make it over to Pepper Potts who is on vacation.
They discover that A.I.M. Advanced Idea Mechanics has been conducting research into techno organic weaponry for some time and pinpoint one of their warehouses in Karachi. S.H.I.E.L.D. locates them and Tony comes out the front to be surrounded by Mandroids. He activates his suitcase armor, destroys all the Mandroids, and heads to Karachi. The scene then cuts to a member of A.I.M. trying to sell weapons to a buyer. Punisher comes in and breaks it up. Just as Punisher is about to kill the A.I.M. member, Iron Man saves him in order to get some answers. Iron Man and Punisher then work together and discover the identity of the new enemy being Ezekiel Stane. Hawkeye and Black Widow are given orders to retrieve Iron Man. Iron Man escapes with the help of the Punisher and continues on to Shanghai where he meets Ezekiel Stane, the son of Obadiah Stane.
Ezekiel paralyzes Iron Man with the Technovore and details his plan to replace humanity with his new technology utilizing the technology on the “Howard” satellite to hack into all computers and satellites. Hawkeye and Black Widow show up and arrest both. Later on the Helicarrier, Iron Man discovers War Machine is barely alive. Then the Technovore hacks the craft leaving Iron Man to uses his arc reactor to stabilize the Helicarrier and drive the Technovore out of the systems. Ezekiel is now betrayed by the Technovore and taken over by it causing a big fight with Iron Man resulting in the Helicarrier crashing into Shanghai. When all hope seems lost, War Machine miraculously wakes up and helps Iron Man fight the Technovore.
In a last ditch effort, Iron Man is able to use a backdoor he built into the Howard’s system to hack back into it temporarily. He is purposely captured by the Technovore and orders War Machine to fire the satellite’s defense laser at Tony’s arc reactor before the Technovore is able to use the other satellites to destroy the world. War Machine fires, and the Technovore is defeated with Iron Man seemingly sacrificing himself. Miraculously, Iron Man is saved by War Machine and lives. Ezekiel Stane is seen in the custody of S.H.I.E.L.D.