Sam Altman’s Bold Bet on Basic Income: Can Cash Transform Lives?

Sam Altman, the CEO of OpenAI, has backed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative focused on individuals living below the poverty line by providing them with unconditional cash payments over a period of three years.

The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remainder, who served as the control group, received just $50 monthly.

Findings from the study indicated that those receiving the larger payments had greater flexibility in pursuing jobs that aligned with their preferences. 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 tended to be more selective in their job searches.

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 individual noted the impact of the cash transfers on their career trajectory, explaining how they took a lower-paying entry-level position in a desired field and eventually achieved 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 found no significant employment differences between those who received the larger payments and the control group. Recipients primarily used the additional funds for essential needs, including food, housing, and transportation. The payments also assisted with healthcare expenses, such as dental braces and alcoholism treatment. While the initial payments helped to alleviate stress, many of the associated health benefits diminished after two years.

Sam Altman has been a supporter of universal basic income, particularly as advancements in artificial intelligence continue to reshape the labor market and displace certain jobs.

Correction: An earlier version of this article incorrectly attributed the study to OpenAI; it was conducted by Sam Altman’s nonprofit, OpenResearch.

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