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 for a period of three years.
The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received monthly payments of $1,000, while the remainder, serving as the control group, received $50.
The findings indicated that those receiving the larger payments had greater freedom to pursue jobs that better matched their preferences. The study noted that these cash payments enabled individuals to make employment decisions that were more in line with their personal circumstances and aspirations. Recipients were not only more likely to seek employment but were also more discerning in their job choices.
One participant expressed that the cash transfers allowed them to save and be selective about job offers, 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 participant shared their experience of accepting a lower-paying entry-level position in a desired field, which eventually led them to a six-figure salary within two years, a move they credited to the financial support from cash transfers.
The research revealed no significant difference in employment rates between those who received larger payments and the control participants. Recipients primarily increased their spending on essential needs such as food, housing, and transportation. The funds also helped address health-related expenses, including dental care and treatment for addiction. Although the payments initially alleviated stress, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income as a potential solution to challenges posed by artificial intelligence on the workforce.
Correction: An earlier version incorrectly stated that the study was conducted by OpenAI; it was actually carried out by Sam Altman’s nonprofit OpenResearch.