Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for 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 per month, while the rest, serving as the control group, received only $50.
According to the research findings, those receiving the larger payments experienced increased flexibility in their job search, allowing them to pursue opportunities that resonated with their personal preferences. The authors of the study noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” indicating that recipients were more likely to seek jobs but were also more selective in their choices.
One participant expressed how the cash transfers allowed them to build savings and be choosier with job offers, 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 entry-level position in a desired field, which eventually led to a six-figure salary within two years, attributing their ability to take that risk to the cash transfers.
The study revealed no significant difference in employment rates between the larger payment recipients and the control group. Recipients primarily increased their spending on basic necessities such as food, housing, and transportation. The payments also aided in covering health-related expenses, including treatments for alcoholism and dental braces. While the initial cash transfers reduced stress levels, many of the health benefits appeared to diminish after two years.
Sam Altman advocates for universal basic income, particularly as advancements in artificial intelligence continue to transform the labor market and displace certain jobs.
A correction: An earlier version of this report incorrectly identified the organization conducting the study as OpenAI instead of Sam Altman’s nonprofit, OpenResearch.