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Both were in the military together and became close friends when working together at Stark Industries. However, when Rhodes became War Machine, it was against Tony Stark’s wishes initially.
Jim Rhodes, War Machine, died at the beginning of Civil War II. Recently Tony Stark was able to revive the man by using the tech that had seeped into his skin while opening the armour.
Cheadle also explained to BroBible how the War Machine-centered show, Armor Wars, will address Tony Stark's death.