Sam Altman, CEO of OpenAI, has financed the largest basic income study in the United States through his nonprofit organization, OpenResearch. This initiative involved providing unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had an annual income of less than $30,000. One-third of the participants received $1,000 per month, while the remainder, serving as a control group, were given $50.
Findings indicated that those receiving the higher payments had more freedom to seek out employment that matched their interests and aspirations. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” It was observed that although recipients were more actively looking for jobs, they were also more selective in their choices.
One participant shared, “Thanks to the cash transfer and my ability to save, I can finally afford to be choosy,” explaining that they could avoid taking a poor job just to meet immediate financial needs. Another recipient mentioned that they were able to accept a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years, stating, “Without the cash transfers, I would never have taken that pay cut.”
The research indicated no significant difference in employment rates between the larger payment recipients and the control group. However, recipients tended to increase their expenditures on essential needs, with food, housing, and transportation being the primary expenses. The payments also assisted in covering health-related costs, including braces and treatments for alcoholism. While the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman advocates for universal basic income as a potential solution to the economic challenges posed by AI advancements that may displace certain jobs.
Correction: This article has been updated to clarify that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.