If your Mac problem is a little less common — your hard drive has failed or you’ve installed a hard drive without OS X, for example — Internet Recovery takes over automatically. It downloads and starts Lion Recovery directly from Apple servers over a broadband Internet connection. And your Mac has access to the same Lion Recovery features online. Internet Recovery is built into every newly-released Mac starting with the Mac mini and MacBook Air."
Anyone wanna guess how that mechanism works? Micro kernel on some internal flash memory?