Sam Altman, CEO of OpenAI, has funded 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 for three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of the participants received $1,000 per month, referred to as the recipients, while the remaining participants, who formed the control group, received $50.
The research indicated that those receiving the larger payments experienced increased flexibility in seeking employment that aligned with their aspirations. 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 shared, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” explaining that they no longer felt compelled to accept unsatisfactory job offers. Another recipient recounted how they managed to take a lower-paying entry-level job in their desired field, which ultimately led 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.”
While the study reported no significant differences in employment rates between the recipients and the control group, it did reveal that recipients allocated the additional funds primarily toward essential needs, including food, housing, and transportation. The payments also assisted in covering health-related expenses, such as braces and treatment for alcoholism. Although the initial cash transfers reduced stress, many of the health benefits subsided after two years.
Altman has been an advocate for universal basic income, particularly as artificial intelligence continues to reshape the job market and displace certain positions.
A correction to the earlier report clarified that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.