Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line over a span of three years.
The study included approximately 3,000 participants between the ages of 21 and 40 from Texas and Illinois, all of whom had annual incomes below $30,000. One-third of the participants received $1,000 each month, while the remaining participants, who served as the control group, received only $50.
Findings from the study indicated that those receiving the higher payments had greater flexibility in their job searches. 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 expressed, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” highlighting the ability to choose jobs that fit better with personal career goals. Another participant shared their experience of accepting a lower-paying entry-level position in their desired field, which eventually led them to a six-figure salary within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
Despite the positive impacts on participants’ job searches, the study observed no significant differences in employment levels between those receiving larger payments and the control group. Recipients primarily used the funds to cover basic necessities such as food, housing, and transportation. The payments also assisted in addressing health needs, including dental braces and treatment for alcoholism. While the initial financial support alleviated stress, many of these health benefits diminished after two years.
Sam Altman has been advocating for universal basic income as a response to the job market disruptions caused by advancements in artificial intelligence.
Note: An earlier version of this article incorrectly identified the group that conducted the study; it was Sam Altman’s nonprofit OpenResearch, not OpenAI.