Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. The initiative aims to provide unconditional cash payments to individuals living below the poverty line for a period of three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. About one-third of the participants received $1,000 each month, termed the “recipients,” while the remaining participants, serving as a control group, received just $50 per month.
Findings from the study indicated that those receiving the larger payments experienced greater flexibility in their job searches, leading to opportunities that aligned more closely with their personal goals and values. The authors concluded that cash payments can enhance individuals’ ability to make employment decisions that suit their individual circumstances.
One participant noted that the cash transfer allowed them to save money and be selective in their job choices, stating, “I don’t have to take a crappy job just because I need income right now.” Another recipient shared their experience of accepting a lower-paid entry-level job in their desired field, which paved the way to a six-figure salary within two years, a step they felt would not have been possible without the financial support.
Despite these positive outcomes, the study reported no significant differences in overall employment rates between those receiving the higher payments and those in the control group, with recipients primarily using the funds to cover essential needs such as food, housing, and transportation. The payments also helped address health-related expenses like braces and treatment for alcoholism. While initial stress levels among recipients decreased due to the payments, many of the health benefits appeared to diminish over the two-year period.
Altman has been an advocate for universal basic income as a potential solution to the job displacement concerns arising from advances in artificial intelligence.
A correction has been made regarding the organization that conducted the study; it was OpenResearch, led by Sam Altman, rather than OpenAI.