What is 169 IP address. 169.254.x.x IP address called Automatic Private IP Address (APIPA). By default, when you connect your computer to network device your computer is set to obtain IP settings from DHCP server.If your computer is unable to locate DHCP server or your computer fail to start DHCP Client, then the APIPA service will assign itself a 169.x.x.x IP address. DHCP Server (i.e router / modem), sometime DHCP Server doesnât release IP address when your computer is demanding. 2  If your computer doesnât get IP settings from DHCP Server, it sets itself into 169 ip address. 3  Quick Fix Reboot network device (router) or reset to factory defaults.