Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date. Through his nonprofit organization, OpenResearch, Altman collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom had annual incomes of less than $30,000. One-third of these individuals received $1,000 per month, while the remaining participants, serving as a control group, received just $50.
Findings from the study indicated that those receiving the larger payments enjoyed greater flexibility in their job searches, allowing them to pursue employment that better aligned with their preferences and values. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were not only more likely to be actively searching for jobs but were also increasingly selective in their choices.
One participant shared that the cash transfers enabled them to build savings, stating, “I’m in a position for once to be picky. I don’t have to take a crappy job just because I need income right now.” Another recipient mentioned how the financial support allowed them to accept a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years, adding, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study found no significant differences in employment rates between those who received larger payments and those in the control group. Most recipients reportedly increased spending on essential needs such as food, housing, and transportation. The payments also helped cover health-related costs, including braces and treatment for alcoholism. Additionally, while the financial assistance initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially as advancements in artificial intelligence continue to transform the labor market and displace some jobs.
A correction has been made regarding the organization responsible for the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI, that conducted the research.