From this article, it does sound like it’s a newer development:

> Goals for Hacking for Defense

> A decade ago, our goal for the class was to teach students Lean Innovation methods while they engaged in national public service. We wanted to familiarize students with the military as a profession and help them better understand its expertise, and its role in society. We also hoped the class would show our sponsors a methodology that builds problem understanding before writing requirements.

> The class still does all this, but now that the DoW is buying from startups and defense venture capital is abundant, the class has turned into a national security incubator. Most of our teams form defense companies.

That’s literally the whole point of the course if you read the original intent of the course it was to change the acquisitions approach of Silicon Valley to match or influence the way the Department of defense does acquisitions and they’ve been extremely successful in capturing the Department of defense as you can see

Every tech company that can is selling war machines to the DoW because that's where most of the country's money is - that and stock markets.