Khosla Bets $25 Million That AI Kills the Static Website

Coframe, a startup that uses AI to rebuild a web page for each individual visitor, has raised a $25 million Series A co-led by Vinod Khosla's Khosla Ventures and Hanabi Capital, bringing its total funding to $35 million. The round values a simple bet: the one-size-fits-all website is on its way out.

Khosla, the billionaire venture capitalist who also backed the company at the seed stage, told Business Insider the shift is already underway. "The world has changed because AI has enabled extreme customization," he said.

His Exhibit A is Amazon. In his telling, shopping there has "gotten worse and worse and worse" over the past 15 years, because the marketplace pushes what it wants to sell rather than what is relevant to the person browsing. The fix, in theory, is obvious: show every visitor a page built for them. The catch has always been cost. "The alternative is to write code for every page that's presented, but that's too expensive and way too slow," Khosla said. "This idea of a customized page for every user is a really good idea."

What does Coframe actually build?

The company was founded in 2023 by Josh Payne, an AI researcher and entrepreneur who studied mathematics and computer science at Stanford and previously co-founded Autograph, the sports and entertainment startup backed by Tom Brady. Payne said the idea grew out of painful firsthand experience: while running a consumer-facing business, he watched teams burn weeks on manual, labor-intensive work to nudge a homepage toward better performance. When ChatGPT arrived, he saw generative AI as the tool that could finally automate that loop.

"Websites are static," Payne told Business Insider. "You build them once; they're one size fits all, and then it takes a tremendous amount of effort to improve them over time."

Coframe's pitch is not a prettier template. The company describes its goal as a "living internet," where the advantage comes from learning exactly what drives a particular customer to click and buy. "It's very bespoke," Payne said. "For the consumer, we're giving a more relevant experience, something that is better representing what the business does and the goods and services that they provide."

What are the numbers behind the pitch?

Coframe says it has generated more than $300 million in incremental revenue for customers that include Dropbox, BCG, Block, Backcountry, and Sur La Table. The conversion-rate claims it publishes are specific:

• Dropbox: conversion rates up 158%
• Replit: up 410%
• Cash App: up 60%

Those figures are the company's own, and they arrive in a category that has historically struggled to hold venture capital's attention. Marketing tech, in Payne's view, calcified into a handful of entrenched giants — Adobe and Salesforce — surrounded by vendors selling incremental tools for testing, targeting, and measuring campaigns. Optimizely, once a Silicon Valley darling, was acquired in 2021 for an undisclosed sum, a fate that has cooled investor enthusiasm for the space.

Payne's argument is that generative AI gives the category a second act. Instead of running A/B tests on button colors, the page itself becomes the variable — assembled and reassembled around what the system learns about each visitor.

Why is Khosla doubling down?

Khosla Ventures' seed-stage check and its continued participation in the Series A signal conviction rather than a passing experiment, though the startup's valuation was not disclosed. For Khosla, the investment extends a broader thesis that AI should remove friction from daily digital life; for Coframe, the capital buys runway in a race to define what per-visitor page generation looks like before the incumbent marketing platforms build their own versions.

"The internet is going to have its own sense of life," Payne said. "The technology is very rapidly catching up to be able to deliver that, so we want to be the ones that help to deliver that."

If the conversion numbers hold at scale, the static homepage — built once, shown to everyone — may soon look like the fax machine of interface design.