Unsure of the fate of the Dark Gundams, the Earth Federation embarked on a costly program of rearmament to strengthen its badly decimated mobile suit forces. As it was clear that current suit designs were little more than cannon fodder for the Dark Gundams, and its single mobile armor unit was evidently outmatched, this program also included an advanced development project to create the next generation of front line robotic fighting machines with the power to achieve ultimate space superiority over any foe. The Earth Federation would have its own Gundam prototype, at any price.
With massive funding appropriations approved by the Earth Senate, a crash program of advanced mobile suit development was begun, however it soon became clear that the brain drain of scientists and engineers to lucrative outer space ventures had eroded the Earth's ability to innovate in the field of robotics.
After several catastrophic failures of prototype suits, the decision was made to move the project off-world and place it in the hands of a lunar-based corporation that had recently submitted patents for new robotics technology that could revolutionize the design of mobile suits.
A heavily guarded construction facility was setup in a crater on the dark side of the moon and there the engineers of Cyberiad Systems set about creating a powerful Gundam prototype for the Earth Federation.