Eno recorded "Baby's on Fire" during the Here Come the Warm Jets sessions in September 1973 at Majestic Studios, London, where he had previously recorded the majority of his earlier material. The track was produced by Eno, who handled production and mixing duties on the bulk of the album's recording, and was created with musicians Simon King, Marty Simon, Robert Fripp, Paul Rudolph, and John Wetton. The song is a bizarre fantasy about a photography session involving a burning infant and unthinking, laughing onlookers.

Live recordings of the song have appeared on various Eno recordings, the first being June 1, 1974, performed with Kevin Ayers, John Cale, Ollie Halsall and Eddie Sparrow. Eno spoke positively about this performance, saying, "The instruments were incredibly out of tune, so out of tune you wouldn’t believe it. But it sounds fantastic. There’s one little bit in it where there’s a riff between the guitar and one of the bassists, and they’re so out of tune it sounds like cellos. Amazing! I mean if you tried to make that sound in the studio it would have taken you ages. You wouldn’t have thought of making it, in fact, it’s such a bizarre sound. And the piano and guitar are quite well out of tune as well. Ha!"

The album version of "Baby's on Fire" is 5 minutes 19 seconds long. The song begins with a tense high-hat and bass line, along several different kinds of electronic sounds. Eno's vocals enter after this, being described as "nasal" and "slightly snotty." Following this first section of lyrics there is a 3 minute guitar solo by Robert Fripp with shifting drum beats as backing; Eno's vocal returns as the song ends. The last line sung by Eno is, "The temperature's rising, and any idiot would know that." In the 801 Live version performed by 801, the last line says, "But any idiot could see that!"

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Wikipedia