The baby, Silas, born prematurely at just 26 weeks, was still inside the fluid bag when he was delivered 10 weeks go at California's Cedars-Sinai Medical Center.
Doctors have called the birth a medical rarity. Such births usually occur about once out of every 80,000 deliveries, they said, according to 'New York Daily News'.
"It really felt like a moment of awe," neonatologist William Binder, who delivered the infant at the West Hollywood hospital's Neonatal Intensive Care Unit told 'KCBS-TV'.
Doctors then cut away the sac so the infant could start breathing on his own.
Amniotic fluid is usually dispelled when a mother's "water" breaks and is usually a sign to head for the hospital.
Doctors said the baby is doing well and should be headed home in less than a month.
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