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Octavian gave himself the name of Augustus. Octavian's original name was Gaius Julius Caesar Octavianus and his mother was the sister of Julius Caesar. In 27 BCE he became Gaius Julius Caesar Augustus in recognition of his services to the state as the first of the Roman Emperors. All succeeding Caesars (Emperors of Rome) called themselves Augustus after that.
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Actium, 31BC - Octavian defeated Mark Antony. After the assassination of Julius Caesar, they both allied to take revenge (Philippi, 42BC), but later on they opposed, especially, when Antony fell in love with Cleopatra (VII), and had sons with her. Rome was afraid that an Egyptian heir jeopardized their throne. In 27BC, Octavian became the first emperor (he did not use this title - he used princeps) of Rome and the Senate named him Augustus.
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The man we know as Octavian was Julius Caesar's adopted son and heir. He was a master politician, a military victor, and became the sole ruler of Rome, changing the government from republic to principate. He was voted the title "Augustus" by the senate and from that time on he was known as Caesar Augustus or simply Augustus. He is sometimes referred to as the first Roman emperor by historians, although the Romans never used the word "emperor".