Sam Altman, the CEO of OpenAI, has financed the largest basic income study in U.S. history through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000. One-third of the participants received monthly payments of $1,000, while the remaining participants, who served as the control group, received just $50.
Results indicated that those who received the larger payments were better equipped to pursue job opportunities aligned with their personal 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,” highlighting that recipients tended to be more selective in their job searches.
One participant expressed gratitude for the cash transfers, saying it allowed them to be choosy about job offers and avoid taking unsatisfactory positions out of financial necessity. Another recipient reported that the financial support enabled them to accept a lower-paying job in a field of interest, ultimately leading to a six-figure salary within two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study revealed no significant differences in employment rates between those receiving the more substantial payments and the control group. Recipients primarily increased their spending on essential needs, including food, housing, and transportation. Additionally, the payments supported health-related expenses, such as braces and alcohol treatment. While initial stress levels among recipients decreased, many of the associated health benefits diminished after two years.
Sam Altman has been a strong advocate for universal basic income, particularly as the rise of artificial intelligence continues to transform the labor market and potentially displace certain jobs.
A correction has been made to clarify that the study was conducted by OpenResearch, not OpenAI, as previously stated.