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Redditor has worst possible experience with Google’s new Find My Device network
(www.androidpolice.com)
This is a most excellent place for technology news and articles.
According to Apple (and I’m sure people have already investigated it), location data is encrypted in such a way that only the owner of the device can read the transmitted location. So no, this isn’t going to “associate your IP address with your location”.
(from https://www.apple.com/airtag/)