Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the U.S. to date through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved around 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Approximately one-third of the participants received $1,000 per month, while the remaining participants, forming a control group, received only $50.
Findings from the study indicated that recipients of the larger payments experienced greater flexibility in their job search, allowing them to pursue positions that better aligned with their goals and personal circumstances. The study’s 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 reflected on the impact of the cash transfers, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” and added, “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 participant mentioned taking a lower-paid entry-level position in a desired field, which led to achieving a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they stated.
The study revealed no significant differences in employment levels between those who received larger payments and those in the control group. Recipients primarily used the funds for essential needs such as food, housing, and transportation. The payments also supported spending on health-related needs, including braces and treatment for alcoholism. While the payments provided initial stress relief, many of the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income in light of the evolving labor market and the displacement of jobs due to advancements in artificial intelligence.
Correction: An earlier version of this article inaccurately identified the organization that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.