Recently discovered deepdreamgenerator.com. You may have seen that gif "deep frog". This is where it's from.
I think that's the purpose of it. It's actually an AI that tries to identify the image and come up with a term, then searches for what it sees, and then photoshops the first result into the original image. LSD would probably make it hard to identify images correctly, and if you were good enough at photoshop, you'd probably produce a similar result.