Yeah no, it's just not how it works. They're trying to support fundamental research and they have limited resources to accomplish them. Some random dude who wants to build a company that generates pretty AI pictures is just not the target audience, and he rightly got rejected.
And frankly, the dream scenario that Pieter describes where he somehow would qualify for these resources also wouldn't help kickstart the tech industry, and it's also not how it works in the states.
What does help, and what European governments (at least the one in The Netherlands that Pieter is from) actually do, is more funding for startups. If you're a startup founder in NL almost every angel you talk to has a matched funding deal with the government. That's such a smart way of keeping up with the US. Do you think US startups get free compute from the government? They don't even get subsidies most of the time. What they get is better funding because there's more capital available, and helping investors with that is exactly how you solve that.