"3. The Early Hackers
The beginnings of the hacker culture as we know it today can be conveniently dated to 1961, the year MIT acquired the first PDP-1. The Signals and Power committee of MIT's Tech Model Railroad Club adopted the machine as their favorite tech-toy and invented programming tools, slang, and an entire surrounding culture that is still recognizably with us today. These early years have been examined in the first part of Steven Levy's book Hackers [Levy] .
MIT's computer culture seems to have been the first to adopt the term `hacker'. The Tech Model Railroad Club's hackers became the nucleus of MIT's Artificial Intelligence Laboratory, the world's leading center of AI research into the early 1980s. Their influence was spread far wider after 1969, the first year of the ARPANET. "
Source: http://catb.org/esr/writings/hacker-history/hacker-history-3...