I'm telling you it spread because of government funding and capitalists were just the medium by which the funding was used.

It doesn’t work just by you saying it. According to multiple sources, the government clearly didn’t want to fund commercial internet and largely backed out during the 90s.

The capitalist part is replaceable and unnecessary.

It doesn’t matter if you think it’s replaceable, I can make that claim too. What matters is what actually happened in reality.