Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the U.S. to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning below $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants received $50 as a control group.
Findings from the research indicated that those receiving larger cash payments had greater flexibility to pursue jobs that aligned with their interests and desires. 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.”
In interviews, participants shared their experiences. One recipient noted that the cash transfer allowed them to build savings and be more selective in job offerings, stating, “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 participant mentioned that they took a lower-paying entry-level job in their desired field and, within two years, achieved a six-figure salary, crediting the cash transfers for making that transition possible.
The study observed no significant differences in employment levels between those receiving larger payments and those in the control group. Recipients primarily used the funds to cover basic needs such as food, housing, and transportation, and some also addressed health-related expenses like braces and addiction treatment. While the cash payments initially alleviated stress, many of the health benefits appeared to diminish after two years.
Altman advocates for universal basic income as a potential solution to job displacement caused by advancements in AI and changes in the job market.
This report has been corrected to clarify that the study was conducted by OpenResearch, not OpenAI.