It is a bit over exaggerated statement by Peter Thiel but there are some truths with it.
When you compete intensively, you do get very good at the thing you compete on. But the obsession of winning makes you being trapped in the old game. And if you jump out of the old game landscape, you might see it’s one of the games gonna be ditched. I have seen this over and over from my experience.
Don’t be trapped in the competition. Be resilient enough to adjust to other competitions. Or not to compete at all – breakthrough the competition, entirely escape it to seek out a fresh new field, and invent a new game.