Sam Altman, CEO of OpenAI, has sponsored the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study included approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 each month, while the remainder, serving as a control group, received only $50.
Results from the study indicated that those receiving the larger amounts of money experienced greater flexibility in their job searches, allowing them to pursue opportunities that better matched their personal interests and aspirations. The researchers noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” leading recipients to be more selective in their job searches.
One participant shared, “Thanks to the cash transfer and the ability to build my savings, I’m finally in a position to be picky,” explaining that it allowed them to avoid taking unsatisfactory jobs simply for immediate income. Another shared their journey of accepting a lower-paying entry-level position in a desired field, which eventually led to a lucrative six-figure salary, stating, “Without the cash transfers, there’s no way I could have taken that pay cut.”
However, the study concluded that there was not a significant difference in overall employment rates between those who received the larger payments and the control group. Recipients primarily directed their increased spending towards essential needs, such as food, housing, and transportation. The payments also assisted them with healthcare expenses, including braces and alcoholism treatment. While initial reductions in stress were noted, many health benefits appeared to diminish after two years.
Sam Altman has been an advocate for universal basic income, particularly as advancements in artificial intelligence continue to transform the labor market and displace certain jobs.
A correction was issued regarding the organization conducting the study, clarifying that it was Sam Altman’s nonprofit OpenResearch and not OpenAI.