Sam Altman, CEO of OpenAI, has funded the largest basic income study in the United States through his nonprofit, OpenResearch. This initiative provided unconditional cash payments to individuals living below the poverty line for three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, serving as a control group, received $50.
Findings from the study revealed that those who received the larger payments felt more empowered to pursue jobs that suited their interests. The 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.”
One participant shared, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they could avoid taking unsatisfactory jobs due to immediate financial pressure. Another recipient mentioned that the funds allowed them to accept a lower-paid entry-level position in their desired field, ultimately leading to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study indicated that there was no significant difference in employment levels between those receiving the larger payments and the control group. Recipients predominantly used the funds to cover basic needs, with food, housing, and transportation being the primary expenses. The payments also helped with health-related costs, such as braces and addiction treatment. While the financial support initially alleviated stress, many of the health benefits diminished after two years.
Altman has advocated for universal basic income as artificial intelligence disrupts the labor market, potentially leading to job losses.
Note: The earlier version of this story inaccurately credited the conducting of the study to OpenAI rather than OpenResearch.