Sam Altman, the CEO of OpenAI, has funded the largest basic income study ever conducted in the United States through his nonprofit organization, OpenResearch. The study provided unconditional cash payments to individuals living below the poverty line over a three-year period.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, were divided into two groups. One-third received $1,000 each month, while the control group received only $50.
The results revealed that those who received the higher payments had greater flexibility in seeking jobs that matched their preferences. The study’s authors noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Participants were more likely to search for jobs while being 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 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 was able to accept a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study showed no significant differences in employment rates between those receiving larger payments and the control group. Recipients primarily used the funds to cover essential expenses such as food, housing, and transportation. The payments also enabled them to address health-related needs, including braces and treatment for alcoholism. However, while the initial cash transfers alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as a potential solution to the economic shifts caused by artificial intelligence, which may displace some jobs.
Correction: An earlier version incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.