"full extent of the information...including any IP masking services"

This suggests that Google aggregates derived information based on how a user uses Google (i.e. VPN info). The fact that derived info was also potentially passed along is particularly upsetting to me.

Aside from the fact that I don't think companies should be able to collect user data at all (if you disagree, I think there's a good chance you're at least a little bit fascist), this amounts to Google providing free surveillance services to the government.

If you squint, it's minority-report-esque: eventually Google will tell the govt who it thinks is likely to commit crimes based on how they interact with its AIs. Almost certainly coming to a society near you soon.