Like Stable Diffusion, it's a web UI (vaguely reminiscent of NovelAI's) that uses a backend (in this case, Huggingface Transformers). You can use different model architectures, as early as GPT-2 to the newer ones like BigScience's BLOOM, Meta's OPT, and EleutherAI's GPT-Neo and Pythia models, just as long as it was implemented in Huggingface.
They have official support for Google Colab[2][3]; most of the models shown are finetunes on novels (Janeway), choose-your-own-adventures (Nerys / Skein / Adventure), or erotic literature (Erebus / Shinen). You can use the models listed or provide a Huggingface URL.
[1] - https://github.com/koboldai/koboldai-client (source code)
[2] - https://colab.research.google.com/github/koboldai/KoboldAI-C... (TPU colab; 13B and 20B models)
[3] - https://colab.research.google.com/github/koboldai/KoboldAI-C... (GPU colab; 6B models and lower)