As Red wonders how the Gym Leader of Viridian City knows his name, the mysterious man continues to speak of the boy's experiences. At the mention of Diglett's Cave and Silph Co., Red recalls his past experiences, and in his disbelief the man not only reveals himself as Gym Leader, but also the leader of Team Rocket, Giovanni.
Recognizing their first encounter to be a test to see his abilities, Red attempts to plan a strategy, but Giovanni cleanly sees through his doubts and drops all of his Poké Balls, challenging Red to make the first move. Angered, Red sends out Poli to attack, but in the short amount of time that he does so, Giovanni successfully releases his Cloyster and freezes Poli. Declaring the importance of a Trainer's own physical aptitude in addition to his Pokémon's, Giovanni compliments Red on his traits of determination, spontaneity, and empathy, lamenting that the boy was not under his allegiance. Issuing a challenge, Giovanni adds a bet to the battle; he would let Red go if he wins, but should Red lose, he would swear his loyalty to Giovanni and fight for him. Laying his own Poké Balls on the ground, Red accepts the challenge under the same conditions as Giovanni.
The battle begins with both Trainers lunging for their Poké Balls on the floor, Red successfully managing to send out Snor first, but Giovanni uses Red's speed against him by having Nidoqueen Counter Snor's attack, before flinging the heavy Pokémon through the wall and out of the Gym. As Giovanni switches to Golem, Red decides to have the ricocheting Pokémon bounce its way out of the Gym so Snor can attack, but Giovanni makes use of Snor's Headbutt shattering Golem to pummel Snor with Rock Throw, and faint it with Explosion.
Cornering Red with his Beedrill, Giovanni reveals that Red's selection of Snorlax simply led him to use Golem's attacks that would be best used outside buildings, indicating that he had read through each and every one of Red's decisions. Asking Red to give up, Giovanni is surprised as Red releases Aero from behind himself.
|| Spoilers end here.
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