I would love for such a fund to invest very liberally in these companies, on the condition that anything it funds must be free and open source

That’s not how the game is played. You absorb the public losses. But they privatize the gains. Otherwise, there’s no deal.

If the money just gets funneled into these companies so they can build their own lock-in, the EU would be recreating the same dependency on a few small companies that happened in the US.

That’s the goal, yes.