Sam Altman, the CEO of OpenAI, has financed the largest basic income research project in the United States through his nonprofit organization, OpenResearch. This study involved providing individuals living below the poverty line with unconditional cash payments over a period of three years.
A total of 3,000 participants aged between 21 and 40 from Texas and Illinois were included in the study, all earning less than $30,000 annually. One-third of the participants were awarded $1,000 per month, while the remaining individuals received $50.
The findings revealed that those receiving the larger payments had greater flexibility to pursue jobs that matched 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 were more likely to be searching for a job, but they were more selective.”
One participant highlighted the positive impact of the cash transfer on their ability to save money, 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 recipient shared their experience of taking a lower-paid entry-level job in a desired field, which eventually led to 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 indicated no significant difference in employment levels between those who received the larger payments and those in the control group. Recipients primarily increased their spending on essential items, with the highest expenditures on food, housing, and transportation. The payments also helped cover health-related costs, such as braces and treatment for alcoholism. While the payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman has been an advocate for the concept of universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.
A correction was issued regarding an earlier report that inaccurately identified the organization conducting the study; it was indeed Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.