The winning move is that governments should do government stuff and private capital should do private capital stuff. Startups belong to the latter.
Except that Apple, Intel, Tesla, etc have all received US government investment [1]. TSMC is a product of the Taiwanese state! Government investment can be done well, and seeds excellent companies.
[1]: https://www.sba.gov/blog/2024/2024-02/white-house-sba-announ...
The comment you're replying to is tainted with the survivorship bias. We see successful companies that got government funding, but not the opposite. Maybe we'd have more innovation and competition without government picking these specific winners.
Ironically, one of the companies you mentioned (Apple) now operates in an environment with very little competition and regularly faces antitrust claims.
Government picking winners may actually reduce competition in the long run. The key difference: when private money picks wrong, it's their loss. When government picks wrong, it's taxpayer money.