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Seems like the best guess that I would concur with.
It's rare that my internet goes down but I suppose you could hot spot your phone to launch.
However, if your internet goes down while steam is still in online mode, you won't be able to play until your internet comes back on. This applies to all games on steam except those that are totally (ie doesn't require steam to run) drm free such as cyberpunk.
So set your steam to offline mode first if you don't have stable internet.
So yes, you will still be able to play regardless of your internet status if you have already downloaded the game and have it in your library.
OP didn't specifically ask about "while in the game". He asked in general.
Yes, if his internet goes down while playing, he will still remain in the game and will be able to continue playing it so long as he doesn't exit (intentionally or crash) the game. However, once he leaves the game, he will not be able to enter it again until his internet comes back.
The other scenario is if his internet goes down while he isn't in the game. Then he will not be able to play until his internet comes back. This is the context for my comment.
However without an internet connection you won't be able to play co-op.
Steam's offline mode requires that it be manually set while online. In a way, it's a form of DRM itself. AFAIK, the other launchers also require that the person be online in order to switch to offline mode.
EDIT: I just tried to disconnect my PC from my router, AKA no internet.
tried to start 5 games and they all worked fine.
HOWEVER, some third party DRMs that games use could possible require online requirement.
Some games don't require steam to run, such as cyberpunk, so even if the internet goes down while steam is online, you will still be able to play them.