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 for a duration of three years.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois were involved in the research, each earning less than $30,000 annually. One-third of these participants received $1,000 per month, referred to as the recipients, while the remaining individuals in the control group received $50.
The findings of the study indicated that recipients of the larger payments had greater flexibility in seeking employment that aligned with their interests. 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 an interview, one participant expressed that the cash transfer allowed them to save and be more selective in their job search, stating, “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 mentioned that the financial support enabled them to accept a lower-paid entry-level position in their desired field, eventually leading to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not reveal significant differences in employment levels between recipients of larger payments and the control group. Recipients primarily increased their spending on essential needs, including food, housing, and transportation. Additionally, the payments helped cover health-related expenses, such as braces and treatment for alcoholism. While the initial financial support alleviated stress for recipients, many of the mental health benefits diminished after two years.
Sam Altman has been a vocal supporter of universal basic income, particularly in the context of AI transforming the labor market and displacing certain jobs.
Correction: An earlier version of this report inaccurately named the organiztion responsible for conducting the study, which was Sam Altman’s nonprofit OpenResearch, not OpenAI.