Sam Altman, the CEO of OpenAI, has financed the largest basic income trial in the United States through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. A third of the participants received $1,000 a month, while the remaining participants, acting as the control group, were given only $50.
Results indicated that those receiving the larger payments had more freedom to pursue job opportunities that aligned with their personal preferences. The authors of the study noted that cash assistance enhances individuals’ ability to make job choices reflective of their circumstances, aspirations, and values. Recipients were seen to be more active in job searching but also exhibited greater selectivity in their applications.
One participant shared, “Thanks to the cash transfer and my ability to save, I can now be choosy,” emphasizing that this financial support allowed them not to accept unsatisfactory jobs out of immediate necessity. Another recipient noted that the ability to accept a lower-paying entry-level job in their desired field ultimately led to a six-figure salary within two years, stating, “Without the cash transfers, there’s no way I could have taken that pay cut.”
The study, however, reported that there was no significant difference in employment rates between those receiving larger amounts and the control group. The cash payments primarily increased spending on essential needs such as food, housing, and transportation, and also assisted recipients in managing health expenses, including braces and alcoholism treatment. While the initial payments appeared to alleviate stress, many of the health benefits diminished after two years.
Sam Altman has been an advocate for universal basic income, especially in light of the transformative effects of artificial intelligence on the job market.
Note: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was conducted by OpenResearch.