Competitors are giving their product away at a loss and there is no defensibility.
They are loosing money but have tens of millions in the bank. It will take at least two years to burn that and they might even get one more round to burn.
At the same time, I feel like I am forced to raise money and start burning, which has its risks.
What can I do?
Ignore it and just focus on your own business.
There are always competitors out there that are more established, that have more resources, and way better PR than you do. There is no market worth entering that doesn't have other players fighting for it. This is true when you're just starting out and it's true when you do billions in annual sales. There is always a bigger fish. So accept it as a fact of life and don't let things you can't change be a distraction.
As the previous reply mentions, just let it go. Instead, focus on innovation, amazing customer experience, etc. Try to differentiate yourself.
Listen to what Jeff Bezos has to say about focusing/worrying about the competition.