Gaius was born in Rome in 20 BC to Marcus Vipsanius Agrippa and Julia the Elder.

He was a part of
the Julio-Claudian dynasty, and was related to all the Julio-Claudian emperors. On his mother's side,
he was the oldest grandson of emperor Augustus. He was the stepson of Tiberius by his mother
Julia's marriage to him, and Brother in law of Claudius by his sister Agrippina the Elder's marriage to
Germanicus. He also was the uncle of Caligula, who was the son of his sister Agrippina. The last
emperor of the dynasty was Nero, who was Gaius' great-nephew and the grandson of Germanicus.[8]
An annual sacrifice on his birthday was granted in a decree.[9]
In 17 BC, his brother Lucius was born. Immediately after, emperor Augustus adopted him and Lucius
from their father by a symbolic sale, and named both Gaius and Lucius his heirs.[10] It is unknown
what their father thought of the adoption.[11] Their adoptive father initiated them into administrative life
when they were still young, and sent them to the provinces as consuls-elect. Augustus taught Gaius
and Lucius how to read, swim, and the other elements of education, taking special pains to train
them to imitate his own handwriting, mostly by himself.[12] Shortly after their adoption in the summer,
Augustus held the fifth-ever Ludi Saeculares ("Secular Games"). The adoption of the boys coupled
with the games served to introduce a new era of peace – the Pax Augusta.[13]
That year his family left for the province of Syria, because his father was given command of the
eastern provinces with proconsular imperium maius.[14] Four years later, in 13 BC, Gaius took part in
the Trojan games with the other patrician youths at the dedication of the Theatre of Marcellus.[15]
Also in 13 BC, his father returned to Rome and was promptly sent to Pannonia to suppress a
rebellion. Agrippa arrived there that winter (in 12 BC), but the Pannonians gave up their plans.
Agrippa returned to Campania in Italy, where he fell ill and died soon after.[16] The death of Gaius'
father made succession a pressing issue. The aurei and denarii issued in 13–12 BC made clear the
Emperor's dynastic plans for Gaius and Lucius. Their father was no longer available to assume the
reins of power if the Emperor were to die, and Augustus had to make it clear who his intended heirs
were in case anything should happen.[17]
To learn about military affairs, he accompanied Tiberius in his campaign against the Sicambri in
8 BC.[15] The year before, Tiberius' brother Drusus the Elder died on his way back from a campaign
across the Rhine. Tiberius was given command of Germania, and waged two campaigns across the
Rhine in 8 BC and 7 BC. He marched his army between the Elbe and the Rhine, and met little
resistance, except from the Sicambri. Tiberius came close to exterminating the Sicambri, and had
those who survived transported to the Roman side of the Rhine, where they could be watched more
closely.[18]