Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative involved providing unconditional cash payments for three years to individuals living below the poverty line.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, serving as a control group, received $50.
Researchers discovered that those receiving the larger payments had greater freedom to pursue job opportunities that matched their aspirations. 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.”
One participant shared their experience, stating, “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 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 revealed they accepted a lower-paying entry-level job in their desired field, which eventually led them to earn a six-figure salary in two years. They credited the cash transfers for allowing them to take the pay cut.
The study showed no significant difference in employment rates between those receiving the larger payments and the control group. Recipients predominantly increased their spending on essential needs such as food, housing, and transportation. The payments also assisted recipients in covering health-related expenses, including braces and alcoholism treatment. While the cash transfers initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income as a potential solution as AI transforms the job market and displaces certain employment opportunities.
Correction: An earlier version of this story incorrectly attributed the study to OpenAI; it was conducted by Sam Altman’s nonprofit, OpenResearch.