I'd like to believe this very much, can any of you convince me that this is real and not some huge inside joke? Stories?

Besides the fact that, like Bluehawk said, this is too big and too long-running and too involved for it to be an inside joke-- there's tulpas/ tulpa-like beings in history, like Socrates' daemon, Carl Jung's tulpa, authors with characters that take on life of their own, there's some articles on it, and research being done...

Or you could come into the IRC and talk to a few hosts and their tulpas, see for yourself.

Some links to stuff mentioned above, h/t /u/Nobillis :

/r/Tulpas Thread