Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide individuals living below the poverty line with unconditional cash payments over three years.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these individuals received $1,000 per month, while the remaining participants, comprising the control group, were given just $50.
Findings revealed that those receiving the larger payments were able to approach their job searches with greater flexibility. The authors of the study 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 save money and be picky about job opportunities, stating, “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 their experience of accepting a lower-paying job in their desired field, which ultimately led to a six-figure salary within two years. They remarked, “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 of larger payments and the control group. Recipients primarily increased spending on essential needs such as food, housing, and transportation. The payments also enabled them to address health care needs, including braces and alcoholism treatment. Although the payments initially alleviated stress, many health benefits diminished after the two-year mark.
Altman has been a strong advocate for universal basic income, particularly in light of how artificial intelligence is reshaping the job market and potentially displacing workers.
Note: An earlier version of this article incorrectly identified the organization conducting the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.