It definitely is. It has been taken over by people from DARPA.

http://www.cnet.com/news/google-hires-darpa-director-regina-dugan/

http://fedscoop.com/darpa-dan-google-atap

http://allthingsd.com/20130413/computer-security-legend-mudge-leaves-darpa-for-google-job/

You can bet they get lots of interesting side-projects from their old co-workers.

Indeed. Don't forget that we are pushing into fascist corporatism, which is where progressives and libertarians both miss the bigger picture: that it is a two way street.

While corporations themselves are capturing large chunks of government agencies, the Gov't itself is outsourcing things like domestic, trade, economic, foreign, and military policy to think-tanks.

At the same time, and this is something that very few in the alternative media are talking about, the Government is swallowing up and melding with corporations via their 'national infrastructure protection' fusion program which has been going on for well over a decade, and almost nobody has said jack about it. I can almost guarantee that Google is classified as CIKR.

Well, that's hardly surprising.