Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment conducted in the United States. Through his nonprofit organization OpenResearch, he collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 each month, referred to as recipients, while the remaining participants, known as the control group, received only $50.
The findings indicated that those receiving larger payments had greater flexibility in seeking employment that suited their preferences. As stated by the authors of the study, “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 transfers allowed them to build savings, granting them the ability to be choosier in their job search. They remarked, “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 that thanks to the cash assistance, they could accept a lower-paying entry-level job in their desired field, eventually achieving a six-figure salary in two years. They noted, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The study showed no significant difference in employment rates between the payment recipients and those in the control group, with recipients mostly increasing their spending on essential needs such as food, housing, and transportation. The payments also helped cover health-related expenses like braces and treatment for alcoholism. However, while the financial support initially alleviated stress, many of the health benefits diminished after two years.
Sam Altman has long advocated for universal basic income, especially as artificial intelligence transforms the job market and displaces certain roles.
Correction: An earlier version of this article mistakenly identified the organization conducting the study. It was OpenResearch, led by Sam Altman, not OpenAI.