Well, it definitely carries a hint of irony. They seem to be going against everything they stand for.
They don't have a mantra of all information wants to be free, and indeed their entire business model relies on hosting private repos.
I understand people wanting to host their open source on a server that's also open source. There's an argument it makes business sense if the closed source setup creates a long-term drift to GitLab or elsewhere. Nevertheless, I don't see the closed source as a contradiction.
You can love open source while producing a mix of open and closed source. Building a sustainable business often means being selective about it and seeing open source as a tool you can benefit from (enlightened self-interest), rather than an ideology you must adhere to at all times.