DALL-E 2 is an AI system developed by OpenAI that generates images from textual descriptions, or "prompts". It can also create variations of existing images, make edits to them using techniques like inpainting, and generate entire compositions from an uploaded image. Trained on billions of text-image pairs, DALL-E 2 uses a diffusion-based model to create new, high-resolution visuals by transforming patterns of noise into coherent images that match the input prompt.