Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the U.S. through his nonprofit organization, OpenResearch. This initiative involved researchers providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes of less than $30,000. One-third of the participants received $1,000 each month, termed the recipients, while the remaining participants were allocated $50.
Findings from the study revealed that those receiving the larger payments had greater freedom to pursue job opportunities that resonated with their aspirations and values. The 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 be searching for a job, but they were more selective.”
One participant expressed that the cash transfer allowed them to accumulate savings, enabling them to be choosy about job offers. They remarked, “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 shared how the program permitted them to accept a lower-paying entry-level position in a desired field, leading 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 difference in employment rates between the recipients and the control group. The cash assistance primarily increased spending on essential needs like food, housing, and transportation. Participants also reported using the funds for health-related expenses, such as braces and treatment for addiction. Although the payments initially reduced stress levels, many participants experienced a decline in related health benefits after two years.
Altman advocates for universal basic income, especially as artificial intelligence transforms job markets and displaces certain employment opportunities.
Correction: An earlier version of this article inaccurately credited the organization conducting the study as OpenAI rather than Sam Altman’s nonprofit, OpenResearch.