Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative involved researchers providing unconditional cash payments to individuals living below the poverty line over a period of three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining individuals in the control group were given only $50.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in seeking jobs that matched their preferences. 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 study participant remarked that the cash transfer allowed them to build savings, enabling them to be more discerning in their job search. “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,” they stated.
Another participant shared their experience of taking a lower-paying entry-level job in a field they were passionate about, which eventually led to a six-figure salary in just two years. They credited the cash transfers for allowing them to make that initial pay cut.
The study did not reveal significant differences in employment levels between those receiving larger payments and the control group. Instead, recipients primarily used the funds to cover essential living expenses, with the majority going toward food, housing, and transportation. Additionally, the payments facilitated access to healthcare needs such as braces and alcoholism treatment. While recipients initially reported reduced stress due to the payments, many of the health benefits diminished after two years.
Sam Altman has advocated for universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.
A correction to the earlier report clarified that the study was conducted by OpenResearch, not OpenAI.