Sam Altman Asked What People Would Do With Free Money, 'Sit Around and Play Video Games or Create Something?' — He Gave Away $1,000 a Month to Find Out

Back in 2016, long before ChatGPT became a household name, OpenAI founder Sam Altman was already thinking about what happens when technology starts replacing jobs. His question wasn't subtle: If people were handed free money, would they just sit around and play video games—or would they build something great?

So, he tested it.

In a blog post on Y Combinator's site, Altman laid out the big idea: "Do people sit around and play video games, or do they create new things? Are people happy and fulfilled? Do people, without the fear of not being able to eat, accomplish far more and benefit society far more?"

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He argued that as AI makes work easier—or even unnecessary—universal basic income might become essential. And yes, he was serious enough to fund the research himself.

The result? One of the largest guaranteed income studies ever conducted in the U.S.

Launched in 2020 through OpenResearch, the Unconditional Cash Study gave 3,000 participants in Texas and Illinois $1,000 a month for three years. No strings attached. A control group of 2,000 received $50 a month. All participants had incomes within 300% of the federal poverty line—many earning less than $29,000 a year. That extra $1,000 meant a roughly 40% income boost for most.

So, what did people do with the money? Not surprisingly, the essentials came first: food, rent, gas. The data showed no luxury splurges or gaming binges—just survival, with a bit more breathing room.

And what about work?

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According to lead researcher Eva Vivalt, an economics professor at the University of Toronto, recipients worked 1.3 to 1.4 hours less per week than the control group. Instead of hustling those extra hours, they used the time for, well, life. "People are doing more stuff," Vivalt told CBS News in a 2024 interview. "And if the results say people value having more leisure time—that this is what increases their well-being—that's positive."

Altman was onto something. As AI grows more capable, we're entering a world where some jobs will be automated, others may vanish, and plenty of people could end up working fewer hours by default. Elon Musk, for one, has floated the idea that basic income might be the future, once AI makes 40-hour workweeks optional.

But here's where it gets real: the study showed no measurable improvement in job quality or wages. The theory was that financial stability would let people wait for better jobs or leave bad ones. It didn't pan out that way—at least not yet.

See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.

Health care usage did go up, though—by a lot. Hospitalizations rose by 26%, and ER visits jumped 10%, showing that when people actually have money, they do something about lingering medical issues.

Bloomberg also reported that as the years went on, participants didn't just spend smarter—they started thinking bigger. They became more future-focused, building budgets, saving more, and making plans for things like college or starting a business. 

Some even moved to new neighborhoods—more than four percentage points higher than the control group. A few chased better school districts; others finally ditched the couch-surfing life and got places of their own.

Bottom line? Sam Altman didn't just wonder what would happen if people had guaranteed income—he found out. And while no one sat around playing games all day, what they did do says a lot about what happens when you give people time, space, and choice.

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