Yesterday has been a day of ups and downs in Tony Stark's life. His break-up with Rumiko, his clash with the villain, Whiplash, and last of all, his armor becoming sentient. And this not the end of Tony's troubles, just the starting.
Now Tony is recuperating in his dream machine. He is talking to a 3-D projection of Jocasta. He asks Jocasta about the reason behind the armor's sudden sentience. Jocasta tells him that when he downloaded her consciousness through the armor, he did not protect it properly against Y2K. That error hacked the armor's programming. Then the lightning strike from his recent battle with Whiplash led to a power build-up inside the armor's circuits, bringing it to life.
Tony is talking with her when the armor suddenly starts speaking again. It tells Tony that it is very much alive, and introduces itself as Iron Man. It adds that it could have bypassed Jocasta's programming and walked of the diagnostic rack, but chose not to, in order to prove its noble intentions. It coaxes Tony to get inside it and work togetner, to become a perfect union of man and machine.
Pepper Potts is taking calls from clients, when Happy comes in. She asks Pepper out for supper. Pepper says that she will ask Tony to grant her an early departure.
Tony says that he is afraid of the ramifications. He doesn't understand how the armor could have bypassed his built-in failsafes to become alive. The armor says that his questions won't change the fact. Just then, a call comes from Pepper. She says that she wants to leave early. Tony hastily gives her permit to do so and cuts the line. Iron Man watches the proceedings and reminds Tony of Ms. Rumiko Fujikawa.
Tony rings her up to find her infuriated. She suggests a time for a meeting, but Tony hesitates. This angers her and she hangs up. Iron Man asks Tony about his love for Rumiko. This question irritates Tony and he lashes out at the armor, saying that all the programming and computer circuits can't teach an armor the concept of Love. Iron Man accepts the fact but counter-questions Tony, saying that he has the same feelings for Tony, as Tony has for Rumiko.
Rumiko is talking with a man named Solomon, telling him about Tony's surprising actions. Solomon tells her to give Tony some time to learn the way with women. Rumiko accepts the suggestion.
Pepper is having a good time with Happy. Happy suggests that they should move in together. Then they go to a fair. The have a gala time there. Before leaving, Happy kisses Pepper on her lips.
Iron Man suggests that Tony should ride him to find out his shortcomings and advantages. Tony agrees to do so. He rides up into the air over Stark Airspace. But his testing is interrupted with the warning of security breach. Tony comes down to find Whiplash waiting for him.
Whiplash has got a new armor and cybernetic arms, along with an independent a.c. unit. He unleashes six whips at Tony. Tony's armor takes momentary control, handling evasive manouvers dextrously. Tony asks it to strip Whiplash of his armor. The armor takes this chance to kick into override. Suddenly Tony finds his armor gone rogue. The armor slaps a now disarmed Whiplash furiously. Whiplash manages to blurt out the name of his employer, Trevor Donohue. But the armor doesn't stop. It kills him unknowingly. Tony is dumbstruck. The armor ponders for a moment, then releases Whiplash's limp body into the water, before flying away.