> Maybe all the rich high funding companies can afford to this and maybe it is the right thing for them to do. They can afford to make big mistakes without hurting their stability. A true startup or smaller company can’t - they would shutdown because one big investment that fails is enough to destroy the whole company.

Both are following the same strategy. Amazon has a $2.86 trillion market cap. That's the equivalent of 143,000 $20 million Series A startups. Companies like Amazon and Google are basically an integrated herd of cash cows plus a VC portfolio.