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He died three years before the first Coachella. So no, he had never performed there.

I'm pretty sure with enough voice data you can make people say just about anything, and Tupac left behind a ton of voice data.

Yep. See the work of cassetteboy: http://www.youtube.com/watch?v=_m2pFYYEiko (NSFW language)

All they use is soundforge, and it's trivial. You can achieve perfect results with modern software and algorithmic assistance.

Wouldn't it be easier to just hire a voice actor or impersonator?

They did use a voice impersonator.

source?

It would be easier to just sit at home and listen to an old Tupac album also.

I'm going to guess something like C - (r)oach - (f)ella.