Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative provided unconditional cash payments to individuals living below the poverty line for a duration of three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois were involved in the study, all earning less than $30,000 annually. One-third of these individuals received $1,000 per month, while the remaining participants in the control group received $50.
The research indicated that those receiving the larger payments had greater flexibility to seek jobs that truly interested them. The authors of the study highlighted that “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 noted that the cash transfer allowed them to build savings, enabling them to be choosy with job opportunities. They expressed that they no longer felt compelled to accept a subpar job just to secure an immediate income, stating, “I have the opportunity to hold out and try and find the right fit.”
Another recipient shared their experience of accepting a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary within two years. They noted that without the cash transfers, taking that pay cut would have been impossible.
The study found no significant differences in overall employment rates between participants who received the larger payments and those in the control group. However, those who received the payments tended to spend more on basic necessities like food, housing, and transportation. The payments also enabled recipients to address health-related expenses, including treatments for alcoholism and orthodontics. While the initial financial assistance reduced stress levels, many of the health benefits diminished after two years.
Sam Altman advocates for universal basic income, particularly in light of the changes in the job market brought on by advancements in artificial intelligence.
It is important to note that an earlier version of this report incorrectly identified the conducting organization; the study was carried out by Sam Altman’s nonprofit OpenResearch, not OpenAI.