Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. The study focused on individuals living below the poverty line and provided them with unconditional cash payments for three years.
The research involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. A third of the participants received $1,000 each month, while the control group received only $50.
Findings revealed that those receiving larger payments had increased freedom to pursue job opportunities that better suited their interests. The study’s 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 how the cash transfers helped them build savings, allowing them to be discerning in their job search. “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,” they stated.
Another recipient mentioned that the financial support enabled them to take a lower-paying entry-level job in their desired field, ultimately leading them to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they explained.
The study indicated no significant difference in overall employment levels between those receiving larger payments and the control group, with recipients primarily increasing their spending on essential needs like food, housing, and transportation. The payments also assisted recipients with health-related expenses, such as braces and treatment for alcoholism. While the cash transfers initially reduced stress, the associated health benefits appeared to diminish after two years.
Sam Altman has been an advocate for universal basic income, especially as artificial intelligence reshapes the labor market.
Correction: An earlier version of this article incorrectly identified the organization that conducted the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.