Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
Conducted with the involvement of researchers, the study included approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 monthly, while the remaining participants, forming the control group, received $50.
Findings revealed that those receiving larger payments experienced greater flexibility in seeking jobs that aligned with their 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 more likely to search for jobs but were also more selective in their choices.
One participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. I don’t have to take a subpar job just because I need income right now. I have the opportunity to hold out and try to find the right fit.” Another recipient mentioned that the payments allowed them to accept a lower-paying entry-level position in a field of interest, which eventually led to a six-figure salary within two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study indicated no significant differences in employment levels between those who received the larger payments and the control group. Recipients primarily increased their spending on basic necessities, such as food, housing, and transportation. The financial support also enabled them to address health-related expenses, including braces and treatment for alcoholism. While the initial cash transfers alleviated some stress, many health benefits diminished after two years.
Sam Altman has advocated for universal basic income, especially as the rise of artificial intelligence transforms the job market and displaces certain roles.
A correction was made to clarify that the study was conducted by Sam Altman’s nonprofit, OpenResearch, not OpenAI.