CLIP-Guided Diffusion is a text-to-image AI algorithm that combines two types of neural networks to generate images. "Diffusion" works by gradually training a neural network to reverse a process of adding "noise" (random pixels) to an image. Once trained, the neural network can generate new images from nothing but random noise. In CLIP-Guided Diffusion, CLIP is used to "guide" the diffusion process towards an image that matches a particular text prompt.