The song's lyrical content reflected Prince's own status in 1981; he'd made his first appearance on Saturday Night Live and released his fourth album, Controversy. The following year Prince dropped 1999, which was the record that elevated him to the first division.
The version on Purple Rain was re-recorded with The Revolution during a live performance on August 3, 1983 at the First Avenue club in Minneapolis (the same concert where "I Would Die 4 U" and "Purple Rain" were were also laid down). The show featured the first appearance of guitarist Wendy Melvoin in The Revolution. Prince later reworked the live recording in the studio, adding overdubs and other edits.
The song is played during The Kid's final concert blowout in the Purple Rain movie. It's lyrical content coincided nicely with the film's star-making narrative.
Session Novi Novag played electric viola on the track. She recalled to Uncut how Prince used her first take: "I was just learning the song. I said, 'Oh, let me do that part again.' He said, 'No, no, I like that feel.' He loved first takes."