Mossad did not create Hamas, they funded it during its earlier
period when it would not have survived without external funds. The
difference is slight, but worth noting.
This activity occurred in the mid-1970s when the Palestinian
Liberation Organization was the primary group fighting for
Palestinian Independence. They were causing violence and problems
throughout the Levant (especially in Jordan and Lebanon) and were
able to bring a number of different Palestinian Terrorist and
Paramilitary Groups under one banner. However, Hamas refused to
join the PLO since the PLO had a primarily Arab Nationalist and
Secularist vision for Palestine whereas Hamas had an Islamist
vision for Palestine. Wishing to encourage division in the
Palestinian ranks and perhaps get the Palestinians to fight one
another instead of causing problems for Israel or other Arab
countries, Mossad sought to strengthen Hamas to counter-balance the
PLO.
Hamas was not able to counter-balance the PLO at this early
point. Instead we see Fatah, the successor to the PLO, in conflict
with Hamas today, almost 30 years later than intended and ruining
the Palestinians' chance for a viable state and further
complicating peace with the Palestinians. Fatah is significantly
more moderate today than the PLO was in the 1970s and 1980s. This
is certainly a moment where hindsight is 20-20.