Sam Altman, CEO of OpenAI, has financed the largest basic income experiment in the United States through his nonprofit venture, OpenResearch. This initiative aimed 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 21 to 40 in Texas and Illinois, all earning less than $30,000 annually. One-third of those involved received $1,000 per month, while the remaining participants were given $50 as a control group.
Findings indicated that those who received the higher payments had more freedom to seek jobs that matched their personal preferences. 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 reported to be more active in job searching, specifically opting for roles that suited their interests.
One participant highlighted the positive impact of the cash transfers, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky.” They emphasized that they could afford to wait for the right job opportunity rather than settling for unsatisfactory employment due to immediate financial needs.
Another recipient shared their experience of accepting a lower-paying entry-level job in a desired field, which ultimately led to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
While the study revealed no significant differences in overall employment levels between those who received larger amounts and the control group, it did show that recipients tended to increase their spending on essential needs like food, housing, and transportation. The funds also supported health-related expenses, such as orthodontic treatment and rehabilitation for alcoholism. Although the cash transfers initially alleviated stress, many health benefits appeared to diminish after a two-year period.
Sam Altman has advocated for universal basic income as a means to adapt to the evolving labor market influenced by artificial intelligence, which is expected to displace certain jobs.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.