Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line over a span of three years.
The research engaged approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning below $30,000 annually. One-third of these participants received $1,000 per month, designated as the recipients, while the remaining individuals, forming the control group, received $50.
Findings from the study revealed that those receiving the larger payments had greater freedom to seek employment that better aligned with their personal goals and circumstances. 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.”
In interviews, a participant expressed that the cash transfers allowed them to build savings, giving them the opportunity to be choosy about job offers. 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 shared that they accepted a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years. They credited the cash transfers with enabling them to take that initial pay cut, stating, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”
The research indicated no significant difference in employment levels between the recipients of larger payments and the control group, with both groups primarily increasing their spending on basic necessities. Key expenses included food, housing, and transportation. The payments also facilitated health-related expenses such as braces and treatment for alcoholism. While the initial cash transfers decreased stress, many health benefits diminished after two years.
Sam Altman has championed the concept of universal basic income, especially as artificial intelligence continues to transform the labor market and displace certain jobs.
Note: A previous version of this article inaccurately credited the study to OpenAI, when in fact it was conducted by Sam Altman’s nonprofit, OpenResearch.