Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative provided unconditional cash payments to individuals living below the poverty line over a period of three years.
The study involved nearly 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, the control group, received only $50 a month.
Findings from the study indicated that those receiving the larger payments felt more empowered to pursue jobs that aligned with their personal goals and values. According to the researchers, cash payments enhanced individuals’ ability to make employment choices that were more suited to their circumstances. The recipients were more likely to search for jobs but did so with greater selectivity.
One participant noted, “Thanks to the cash transfer and building up my savings, I can finally be picky,” stating that they no longer feel compelled to accept a subpar job out of immediate financial need. Another recipient shared that the financial support enabled them to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary within two years. “Without the cash transfers, there’s no way I could have taken that pay cut,” they remarked.
The study indicated that there was no significant difference in employment rates between the recipients of the larger payments and the control group. However, those receiving the payments tended to spend more on essential needs, including food, housing, and transportation, and addressed health-related expenses such as braces and addiction treatment. While the cash transfers initially reduced stress, many of the associated health benefits diminished after two years.
Altman has been an advocate for universal basic income, particularly in light of how artificial intelligence is transforming the job market and displacing certain roles.
Note: A clarification has been made regarding the organization that conducted the study; it was Sam Altman’s nonprofit, OpenResearch, not OpenAI.