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 involved providing unconditional cash payments to individuals living below the poverty line over a three-year period.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, took part in the research. One-third of these participants received $1,000 a month, referred to as the recipients, while the remaining participants, part of a control group, received $50.
The findings indicated that those who received the larger payments had greater flexibility in seeking jobs that aligned with their personal aspirations. The study’s authors noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were noted to be more active in job searching but were also more selective in their choices.
One participant shared their experience, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky.” This individual emphasized that they no longer felt compelled to accept any job out of necessity, allowing them to focus on finding a suitable position.
Another recipient highlighted their journey, explaining that the cash transfers enabled them to take a lower-paying entry-level job in their desired field, which ultimately led to a six-figure salary in two years. They acknowledged that without those cash transfers, taking such a pay cut would not have been feasible.
The study revealed no significant difference in employment rates between those receiving larger payments and the control group. Recipients primarily utilized the funds to cover basic needs, such as food, housing, and transportation. Additionally, some payments helped address health-related expenses, including braces and treatment for alcoholism. While the initial cash assistance reduced stress, many of the health benefits diminished after two years.
Sam Altman has advocated for the concept of universal basic income, especially in light of artificial intelligence’s impact on the labor market and the potential elimination of certain jobs.
Correction: A previous version of this story inaccurately indicated that OpenAI conducted the study; it was actually Sam Altman’s nonprofit, OpenResearch.