Sam Altman, CEO of OpenAI, funded the largest universal basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to investigate the effects of unconditional cash payments on individuals living below the poverty line over a three-year period.
The study engaged approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these individuals were given $1,000 per month, while the remainder, serving as a control group, received $50 per month.
Findings revealed that those receiving the larger payments had increased flexibility in pursuing jobs that better matched their interests and aspirations. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”
One participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” stating they could afford to hold out for a job that was a better match. Another recipient mentioned taking a lower-paying entry-level role in their desired field, which eventually led to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they said.
However, the study noted no significant difference in overall employment levels between recipients and the control group. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. They also used the payments to cover health-related expenses, including braces and treatment for alcoholism. While the cash support initially alleviated stress, many health benefits diminished after two years.
Sam Altman has been a vocal advocate for the concept of universal basic income, especially as advancements in artificial intelligence disrupt traditional job markets and eliminate certain positions.
A correction from earlier reporting clarified that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.