Sam Altman, the CEO of OpenAI, has funded a significant basic income experiment in the United States through his nonprofit, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a span of three years.
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 these participants received $1,000 monthly, referred to as recipients, while the remaining individuals, known as the control group, were given $50 monthly.
Findings from the research indicated that those receiving the larger payments had greater freedom to pursue job opportunities that suited their preferences. According to the authors of the study, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” They noted that recipients were more likely to search for employment but were also more selective in their job choices.
One participant shared, “Thanks to the cash transfer and my ability to save, I can finally be choosy,” expressing that they no longer felt pressured to accept a job that did not meet their standards. Another individual noted that they accepted a lower-paid entry-level position in a desired field, which eventually led to a six-figure salary within two years. They remarked, “Without the cash transfers, I couldn’t have afforded to take that pay cut.”
However, the study revealed no significant differences in employment rates between those who received the larger payments and those in the control group. Recipients primarily utilized the funds to cover essential living expenses, including food, housing, and transportation. The financial support also allowed them to address health-related expenses, such as dental work and treatment for alcoholism. While the payments initially alleviated stress, many of the health benefits diminished over a two-year period.
Altman has been a vocal advocate for the concept of universal basic income, particularly as advances in artificial intelligence continue to transform the job market and displace certain roles.
A correction has been issued for the initial report, clarifying that the study was conducted by Altman’s organization OpenResearch, not OpenAI.