Deemed as "bleeding edge", this armor was created as Tony Stark essentially reinvented himself and the armor. Being called an upgrade to Extremis by Mr. Fantastic, Tony Stark corrected this comment by saying, "Nah - this is what comes next". It was the first armor powered entirely by repulsor technology via Stark's new device, the R.T. node.
After Stark's reliance as a pilot of the suit was put in doubt, courtesy of the Mandarin, this armor was removed from Tony's body by Reed Richards, under orders of the U.S. government, and was rendered completely inert, disabling reverse engineering or any type of investigation to duplicate its technology. Sometime later, Stark developed a more advanced armor.
Tony later created a solid version of this suit, which isn't based on nanotechnology, but has the same designs and, possibly, the same functions. He used it for the first time when Punisher stole his current armor in his battle against the Avengers.
This entire armor is kept inside Tony's body until mentally commanded, at which point it manifests itself as the Iron Man Armor. The armor is made up of Nano-Machines that can now be commanded to turn into any type of structure upon Stark's skin. For example, the nano-machines can turn into clothes, other armors, or even different beings completely, by having the nano-machines change their properties into whatever Stark wants them to be. It can also dissociate to transform into the Iron Man armor whenever Stark wishes. The armor and Stark's own transhuman body are powered by the high-yield R.T. node mounted in his chest. The high output of the node has greatly augmented Stark's intelligence and provided him with superhuman-level multitasking and learning capabilities.
Unlike earlier armors, this new armor does not appear to rely on motors and servos for motion. Instead, the nano-machines create a second layer of artificial muscle over Stark's body, upon which additional structures are assembled. This also enables the armor to self-repair and be almost invulnerable, as the armor is capable of transforming and healing itself, by having the constantly replicating nano-machines replace anything that is lost or used, as long as the power output from the arc reactor isn't interrupted or terminated.
The neurokinetic user-controlled morphologic nanoparticle bundles that form the suit reside in Stark's body, and form a fibrous wetweb of iron and platinum, that can be commanded to form any type of structure upon Stark's skin, from weaponry to clothing, and can even stop a howitzer shell.
Known weaponry includes repulsors, uni-beam, pulse bolts, tasers, and an energy blade. Defenses include deflector shields. Other type of weapons and upgrades seems to be created by Stark's imagination, such as a boxing glove, large guns extending from his arms, or cannons.
The suit's repulsors, which are located around the knuckles, chest, back and legs of the armor, as well as in the traditional palms, now function also as cameras, or "eyeballs", which afford Stark a 360-degree panoramic view around himself. Temporarily replacing the suit's primary composite - iron/platinum - with carbon nanotubes rendered it unaffectable by Magneto's powers when he and Iron Man engaged in combat over Utopia.
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