From what I understand, Google DeepDream is a system which plays off Google's image recognition system. This system was taught to identify the contents of millions of images in order to categorize new ones itself. This creepy Sci-Fi AI was then programmed to "daydream" in a way and put bits of what it sees into other images. I've heard it being compared to looking for shapes in a cloudy sky, only if it sees a dog, it will actually turn that profile into a dog over several passes of edge refinement.
For a less shitty explanation check this out:
From an artist's perspective I have to say that I'm genuinely impressed by the perceived artistic nature of a lot of these. It's an odd thing really. It's just following protocols and algorithms, yet it's still better than a lot of surrealist art.
And it doesn't even need input, check this video out, all produced solely by the program. It'd be cool to get some sort of monitor that could generate these up on the wall.
Anyway If you want to see what HAL 9000 makes of my art click the "Display Gallery" button below. I personally really like the snakebird abomination that it made from my Shrek painting