Silently and Very Fast - Catherynne M. Valente Fantastic!
Silently and Very Fast tells the story of Elefsis, who started off as a complex household system for a whole family, and with the help of a child of its creator, slowly ascended and became a true independent personality. They believe it might be the first truly "living" artificial intelligence.

The novella is a fine blend of sci-fi and fairy tales.
Not only is Elefsis's virtual space a kind of "magical" place, but fairy tales are an active part of the story: in allegoric little stories, in Elefsis's developement and in it's way of communicating with others.
And above all that, it's basically a story of a family's multiple generations living in symbiosis with this unique entity in an isolated house, which, to me, kinda screams "magical realism".

But the book is equal parts sci-fi.
What is Elefsis exactly and what does it want? Is it really "alive"? Does it want to become a human like the little boy from Spielberg's A.I., or does it want to become like Skynet and bring Doomsday instead?

I will definitely read more from this author. This is an amazing work.