Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The initiative involved researchers providing unrestricted cash payments to individuals living below the poverty line over a three-year period.
The study encompassed approximately 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these individuals received $1,000 monthly while the remaining participants, designated as the control group, received $50.
Findings from the study indicated that those who received the larger payments experienced greater flexibility in seeking employment that matched their interests and aspirations. 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 shared their experience, stating that the cash transfer allowed them to save and become selective in their job search. They emphasized, “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 described how the financial support enabled them to accept a lower-paying entry-level position in a desired field, which ultimately led to a six-figure salary within two years. They expressed that without the cash transfers, taking such a pay cut would have been impossible.
The study did not reveal significant differences in employment rates between the recipients and the control group. Recipients primarily utilized the payments to cover basic needs, with food, housing, and transportation being the largest expenses. Additionally, the funds helped address health-related costs, such as orthodontics and alcoholism treatment. Although participants reported reduced stress initially, many health benefits diminished after two years.
Sam Altman advocates for universal basic income as a potential solution as artificial intelligence transforms the job market and leads to job displacement.
Correction: An earlier version of this article incorrectly identified the organization conducting the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.