Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One group received $1,000 each month, while a control group received only $50.
Findings indicated that those receiving the larger payments had increased flexibility in their job searches, allowing them to pursue roles that aligned with their personal aspirations. The authors of the study noted that cash assistance enhances individuals’ ability to make employment decisions that suit their unique circumstances and objectives.
One participant expressed that the cash transfers enabled them to save money and be more selective in their job search, stating, “I don’t have to take a crappy job just because I need income right now.” Another recipient highlighted how the financial support allowed them to accept a lower-paying job in their desired field, which eventually led to a six-figure salary within two years.
However, the study revealed no significant differences in overall employment rates between those receiving larger payments and those in the control group. The additional funds mainly increased spending on essential needs, including food, housing, and transportation. Participants also reported using the payments for health-related expenses, such as braces and addiction treatment. While recipients initially experienced reduced stress, many of the mental health benefits diminished after two years.
Sam Altman has advocated for universal basic income in light of AI’s impact on the job market, which is leading to job displacement.
An earlier version of this article incorrectly identified the organization responsible for the study; it was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.