I have to assume they're compute constrained and thus need to either raise prices or cut their lowest-margin products (which amounts to more or less the same thing, but with different optics), or turn away new users.

My assumption is that people are able to very easily saturate Pro with Claude Code and therefore even though the quotas are lower (more than proportionally) the utilization of those quotas is higher enough that Pro is less profitable.

I think there is a definite possibility that they aren't compute constrained, but rather trying to improve a sorry cash flow situation before IPO.

Of course, I don't have real insight into available compute, but the vibe slope seems to have dropped a bit, at the same time as new GPUs are being shoved into datacenters as fast as possible.