Sam Altman’s Bold Experiment: Can Cash Transfers Transform Lives?

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 study provided unconditional cash payments to individuals living below the poverty line in a three-year initiative.

Around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, took part in the study. One-third of these participants received $1,000 per month, while the remaining participants, forming the control group, received only $50.

The findings revealed that those who received the larger payments had greater flexibility in their job search, enabling them to pursue opportunities that aligned with their preferences. The study’s authors 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.”

In interviews, participants expressed how the cash transfers allowed them to be more discerning about job offers. One participant stated, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” emphasizing they could avoid accepting jobs that were unsuitable. Another recipient shared that they were able to take a lower-paying entry-level position in their desired field, which eventually led to a six-figure salary within two years, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”

While the study did not show any significant differences in overall employment levels between those who received larger payments and those in the control group, recipients reported increased spending on essential needs. Key expenditures included food, housing, and transportation, with some payments assisting in health-related expenses, such as braces and addiction treatment. Although the initial financial support helped reduce stress, many of the health benefits diminished after two years.

Altman has been an advocate for universal basic income as automation and artificial intelligence continue to transform the job market and displace certain roles.

An earlier version of this story incorrectly attributed the study to OpenAI; it was actually conducted by OpenResearch, Altman’s nonprofit.

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