Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
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The basic income study involved approximately 3,000 participants aged 21 to 40 in Texas and Illinois, all of whom earned less than $30,000 per year. One-third of these individuals received $1,000 each month, while the remaining participants, serving as a control group, received $50.
Results from the study showed that those receiving the larger payments enjoyed greater flexibility to pursue desired job opportunities. The authors 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.”
A participant shared that the cash transfers allowed them to save and be choosier when seeking employment, 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 recipient highlighted that the funding allowed them to accept a lower-paying entry-level position in their desired field, which ultimately led to a six-figure salary within two years. They commented, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study revealed no significant difference in employment rates between recipients of larger payments and the control group. Those who received the higher amounts primarily utilized the funding to cover basic needs such as food, housing, and transportation, as well as to address health-related expenses, including braces and treatment for alcoholism. While the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as a viable solution in response to the labor market changes brought about by advancements in artificial intelligence, which may lead to job displacement.
In an update, it was clarified that the research was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI, as previously stated.