Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line over a span of three years.
Approximately 3,000 participants aged between 21 and 40 from Texas and Illinois were involved in the study, all of whom had an annual income of less than $30,000. A third of these participants received $1,000 monthly as the treatment group, while others, serving as the control group, received $50.
The findings revealed that those receiving the larger payments experienced increased flexibility in their job searches. The authors of the study noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” They observed that recipients were more likely to seek employment but were also more selective in their choices.
One participant expressed that the cash transfers allowed them to build savings, making it possible to be choosy about job opportunities: “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.” Another recipient shared that they could take a lower-paying entry-level job in their desired field, which eventually led them 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.”
While the study did not show significant differences in overall employment rates between the two groups, it was noted that recipients tended to increase their spending on essential needs such as food, housing, and transportation. The payments also assisted with healthcare expenses, including braces and treatment for alcoholism. However, while the initial financial support alleviated stress, many of the health benefits diminished after two years.
Sam Altman has advocated for universal basic income, especially in light of how AI technology is transforming the labor market and displacing certain jobs.
Correction: An earlier version of this story inaccurately cited the organization conducting the study. It was Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.