Sam Altman, the CEO of OpenAI, has funded the most extensive basic income experiment in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line for three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the individuals received $1,000 per month, while the rest, serving as a control group, received just $50.
Findings indicated that those who received the larger payments had greater freedom to pursue more desirable job opportunities. 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.” While recipients were more likely to be actively searching for work, they were also more selective in their choices.
One participant commented, “Thanks to the cash transfer and being able to build up my savings, I’m finally in a position to be picky,” emphasizing that they could avoid taking a subpar job out of immediate necessity. Another recipient shared their experience of accepting a lower-paid entry-level position in their desired field, which ultimately led to a six-figure salary within two years. They remarked that without the cash transfers, accepting a pay cut would have been impossible.
The study found no significant difference in employment rates between the recipients and the control group. The additional funds primarily increased spending on essential needs like food, housing, and transportation. Payments also allowed recipients to cover health-related expenses, including braces and treatment for alcoholism. Although the cash assistance initially alleviated stress, many of the health benefits diminished after a two-year period.
Sam Altman has been an advocate for universal basic income, especially as artificial intelligence transforms the labor market and displaces certain jobs.
Correction: An earlier version of this article inaccurately identified the organization that conducted the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.