Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the U.S. to date through his nonprofit, OpenResearch. This study aims to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The research involved 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 these participants received $1,000 per month, while the remaining participants, serving as a control group, received only $50.
The findings indicated that those who received the larger payments experienced greater flexibility in their job search, allowing them to pursue positions that better matched their personal goals and values. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.”
One participant shared their experience, stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky. 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 mentioned that thanks to the cash transfers, they could accept a lower-paying entry-level position in their desired field, which ultimately led to 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 said.
The study revealed no significant difference in employment rates between those receiving the higher payments and the control group. Recipients primarily increased their spending on essentials such as food, housing, and transportation. The payments also assisted in covering health-related expenses, including braces and treatment for alcoholism. While the initial financial support alleviated stress, the health benefits diminished after two years.
Altman has been a strong advocate for universal basic income, especially as artificial intelligence changes the labor market and leads to job displacement.
It is important to note that a previous version of this story incorrectly identified the organization conducting the study; it was indeed Sam Altman’s nonprofit, OpenResearch, not OpenAI.