It’s widely predicted that AI will upend the economy and threaten many existing jobs. Sam Altman, in trying to stay ahead of public fears of mass unemployment, has offered universal basic income as a solution. He also has envisioned an AI future of abundance. In this episode, reporter Ellen Huet looks at Altman’s proposals for ending poverty and his current relationship with his sister, Annie Altman, who struggles with homelessness in Hawaii.
Previously on Foundering, I think it'd be.
Good to end poverty. Maybe you think we should stop the technology think can do that, I personally don't. The first time I looked at GPT too, I was like, oh my, this is like, this is crazy. This is you know, there's there's nothing like, there's nothing like this in the world, Like it's crazy that this is possible.
This was much more fluid feeling. It gave you a sense that you were communicating with a person, even though you were clearly not communicating with a person.
I think it's how we get to this world of abundance. I think AI will probably, like most likely sort of lead to the end of the world, and.
Yet we are wasting our time talking about these fantasy scenarios because the people with all the money decided to get worried about it. This episode picks up from where part one of Heaven and Hell left off. If you haven't listened to that episode yet, you might want to go back and listen in order. One thing Sam has been really clear he believes is that AI is going to dramatically change our society and probably put a lot of people out of work. His voice is matter of fact when He describes this on the Joe Rogan podcast.
I think it's going to be a great thing, but I think it's not going to be all a great thing. It's not this clean story of we're going to do this and it's all going to be great, and it's going to be net great, but it's going to be like a technological revolution. It's going to be a societal revolution.
When Sam says net, he means overall.
And even if it's like net wonderful, you know, there's things we're going to lose along the way. Some kinds of job, some kind of parts of our way of life, some parts of the way we live are going to change or go away.
These are scary changes. But when Sam talks about these changes, he also has a proposed solution to them, Universal Basic income, or UBI. It's a method of distributing money to keep people out of poverty, and it has a few key tenets. It's cash given to everyone on a regular schedule, and it's unconditional, it's not tied to a job, and people can spend it on whatever they want, no strings attached. Sam says UBI is a great solution, one that we should pursue as a society. It will help reduce inequality worldwide.
We're going to have an opportunity to push the reset button and think about the world we want, and I think universal basic income is one part of that that. I think we do have an opportunity as we rewrite the social contract to think about how we can get towards a more equal world.
Sam has spent almost a decade making himself into a tech expert on UBI. In twenty sixteen, when he was running y Combinator, he started a basic income study in Oakland. That project eventually gave one thousand people one thousand dollars every month. It's no longer associated with YC and is now funded by OpenAI. He also started a crypto project called world Coin, which uses these silver orbs to scan your eyeballs and register you in a database in exchange for a digital currency. The point is to one day be able to distribute a universal basic income to everyone through this eyeball registry. Anyway, regardless of the method, Sam has clearly made UBI part of his personal brand. As you heard in Part one, he wants to eradicate poverty, and he has continued to talk about this as recently as twenty twenty three.
You know, I think the world should eliminate poverty if able to do so. But one thing I think we all could agree on, we just shouldn't have poverty in the world. I think it'd be good to end poverty. Maybe you think we should stop a technology that can do that, I personally don't.
What really strikes me is that Sam positions himself as the visionary behind this AI that might put us all out of work, and the visionary behind systems that will save us from that chaos. He's offering fixes to the problems that his own technology will create. Imagine a future where Sam Altman's company has invented AI so powerful that it upends the entire labor economy. We no longer work for money. Instead, we get monthly checks from Sam Altman's income distribution system. I can imagine that his intentions might be good, and that he wants to make a difference here. But what Sam's proposing is ending poverty through systems overseen by him, basically, and that's asking us to put a huge amount of trust in him. Remember, Sam is really good at gaining power. He has a deep drive to be in charge. His company has made promises about adhering to certain principles and then moved away from them. It brings me back to this question we asked in episode one, what I think is the key question of this series. Should we trust this person?
We'll be right back.
Like we said earlier, there's a part of Sam's life that really complicates this image of him. It's the story of his little sister Annie. She says she lives in poverty. Sometimes she struggles with homelessness. She says she survives by doing sex work. Sam is pitching this dream future in which universal basic income will protect everyone who needs it. That sounds lovely in theory, but when it's held up next to Annie's messy, everyday reality, that promise starts to sound a bit hollow. Housing insecurity has defined Annie's life for the past few years. This is a complex and sensitive situation, so I wanted to hear from her myself.
In my experience, it's not only hard to do anything when you are housing insecure, it is impossible. I haven't had a typical day in four years because of how much energy both physically like looking for places or doing things, or looking for jobs and emotionally goes into housing insecurity. It has been the single biggest energy output of my past year.
In person, Annie is upbeat and smiley. She has good suggestions for health food stores on Maui. She has the word love tattooed across her knuckles. She makes a podcast, Hello and Welcome to the Annie Altman Show All Humans or Human Podcast, and posts videos of her singing on YouTube.
This is for my dad.
Sometimes, I and to better understand her story, I want to rewind to her childhood. When we heard from Annie briefly in the first episode, she talked about Sam's domineering attitude within their family, how he dictated they wouldn't have Christmas trees and put himself in charge of how long each sibling could speak at their dad's funeral. Their family has three boys. Sam's the oldest, then Max, then Jack. Annie is the youngest, nine years younger than Sam and the only girl. Her brothers loved science, math, games, nerdy stuff. She was always the artistic, sensitive one. Even when they were children, she sometimes felt like the odd one out, and as they became adults, the bonds between the brothers tightened both personally and professionally. While Sam was running YC, Jack founded a software company that was funded by YC. Jack and Max also both worked with Sam, helping run his investment fund with money from Peter Teel. Then all three started another investment fund together in which they used Sam's personal wealth. The three brothers lived together in San Francisco, brothers, coworkers, roommates, a tight, messy knot of family, business and money. Annie, on the other hand, was not part of the Altman family brand. With each new step in her life, she seemed to veer farther away from the path she felt was expected of her. She completed pre med requirements, but decided not to pursue that further. She did improv classes, stand up comedy, yoga, teacher training. She said her dad was supportive of this turn away from a more traditional path. Her mom, who was a physician, was less excited.
My siblings and mother were very judgmental about the shift and also very this is just a phase. I was an am at total daddy's girl. With my mother. There was closeness only when I was doing what she wanted me to do, which is a story. Sadly, I feel like a lot of people can relate to.
Just a note. We reached out to Sam his siblings, and his mom for comment in this episode. His mom, Connie Gibstein, responded with this statement, We love Annie and are very concerned about her well being. Over the years, we have offered her financial support and help and continued to offer it today. Navigating the balance between providing support without enabling self destructive behavior for a family member with mental health struggles is extraordinarily difficult. We only want the best for Annie and hope everyone will treat her with compassion. In twenty eighteen, Annie's father died suddenly of a heart attack, and the grief hit her hard. Meanwhile, she also started dealing with some chronic health issues, including tendonitis in her ankle that made it difficult to do work that required standing. She quit her job. She was still mourning her dad. She had gotten some life insurance money after he died, but when that ran out a year later, she still found herself in a desperate financial situation. In order to pay rent, she started selling her furniture. She says she asked her family directly for money to pay rent and cover groceries.
I asked my mother for help and she said no, And then asked Sam and he was told to say no because of her wanting him to say no, and he's a grown man in his thirties millions of dollars now.
Sam and his family have given Annie money at times, but she says it always came with heavy conditions that made her nervous. At one point, Sam wanted her to get back on zoloft, an antidepressant, which she had started as a teen but had stopped. Later on, She forwarded me an email from Sam where he asked her to share her bank statements and to allow him and his mom to sit in on some of her therapy sessions in exchange for her rent and medical expenses being covered. She felt like it was his way of exerting leverage or power over her. Of course, Sam can spend his money as he pleases, but again, he's on stage espousing the virtues of universal basic income giving money away for free, unconditionally, and Annie says he didn't do the same here for her. There were times when I'd gone back and forth about what to include from Annie's story. It's a very personal, messy family situation, and I'll confess that on occasion I've doubted some unrelated things she's told me. But also I've looked through corroborating emails and documents. We drove to a lot of places Annie lived, and I met people she lived with. So in late twenty nineteen, when she asked for help and says she was told no, she turned to something she considered a last resort to make money. She started sex work. She made an account on a sugar Daddy dating website where people trade money for companionship and often sex.
I was just I was in a desperate place. I mean I literally like people who have been in a position like this ever know that when you're in a place of selling furniture, you're in a desperate position of I'm out options. This is a plan z I would not be doing this if plans a through I had worked out in any capacity.
The first thing she tried was video chatting with a middle aged man. She flashed him on camera and he sent her money over Zell. She posted videos on OnlyFans and porn Hub. She also did in person sex work for two years. She says she didn't want to, but it was the work that she was able to fit into her unpredictable schedule of dealing with her health issues, her lack of stable income, led to a long period of housing insecurity. At times, she lived with sex work clients or even with strangers from the internet. Her sex work contributed to her precarious housing. She didn't have pay stubs or regular income, which limited the kind of leases she could get. It felt like this interconnected web, exactly the kind of vicious cycle that something like universal basic income tries to break.
If I had a security deposit in my bank account, never would have lived with this man, not, not even a little bit of a chance. Would I have lived with this man. There's some unhealthy sex work experiences, and I've also had very traumatizing experiences from in person work that would not have happened if I had secure housing. I'm still in and have been so long in survival mode that it really shifts everything. It really shifts everything times when it's been really like both places like staying just for a week and a half and then enough floor for a week, and then someone's for a night, and then a floor for a week. In those places of really moving that much in a short period of time, there's no I had no energy for anything else, really feeling a sense of helplessness and powerlessness that I have never experienced.
Ever, it's not a clean cut situation. In twenty twenty two, Sam offered to buy Annie a house, but she says it wasn't going to be in her name and the conditions made her uncomfortable.
It became clear to me that it was not an offer for my house. It was an offer for a house of Sam's or a lawyer of his that I would be allowed to live in.
She felt like it was a throwback to Sam's attempts to get her on Zoloft and to peer into her bank statements, so she said, no, I do want to pause on this because I know it may sound illogical. After all, it would have been a place to live. But from her point of view, Sam had exerted control over her throughout their lives, and this seemed like one more attempt to control her. During those conversations, she was clear with Sam about the hardships she had endured in the past couple of years.
I told him over the series of those phone calls too, that I had started sex work, and distinctly remember when I first told him about doing sex work and he said, quote good.
Annie was stung because she remembers that he didn't ask anything more about it, like she was sharing something that was painful for her and he was blowing past.
It to hear your little sister tell you she's doing something she doesn't want to do related to sex, and for the response to be good. So I was like, oh, you're glad that I'm starting to post on OnlyFans. It sounds good to you because I'm supporting myself, even if I'm telling you I'm doing this as a plan Z because I don't know what else to do.
A person close to Sam says that Sam remembers the conversation differently. Annie and Sam are mostly estranged. After that conversation, she kept living in Hawaii, struggling in obscurity. Meanwhile, Sam was ascendant. He was doing world tours CEO of the year, he officially became a billionaire. Most of the world had no idea Annie Altman existed, let alone that she was depending on OnlyFans for survival. But last fall New York magazine published a profile of Sam, and the journalist Elizabeth Wyle interviewed Annie. The article was the first time a lot of people have found out Sam even had a sister. Myself included some of the trippiest messages I got from reporters when that.
Article first came out were reporters who have watched every interview Sam has ever done, saying he's never mentioned a sister.
Annie worries that because she's basically invisible in Sam's public life life, especially compared to his tight relationship with his brothers, reporters won't take her story seriously.
That they will then question my validity or oh, well, she's crazy. Maybe he did, you know, maybe he's just not talking about her because she's so mentally unstable, and so now let's recycle that Annie's crazy narrative and this is why she can't be trusted, or we should just ignore her.
In the days leading up to the article coming out, New York Magazine reached out to Sam and his family and Open AI for fact checking and to confirm details. So Sam knew the story was going to mention Annie, and then the day before the article ran, something spurred Sam to make an unexpected move. He emailed Annie, and the night before it came out was Yam Kapoor, the Jewish day of forgiveness.
Sam emailed me no subject in an all lowercase and said hi Annie, in the spirit of it. Almost being Yam Kapoor. I wanted to apologize and ask for forgiveness for something I should have kept sending you money without conditions, even though our family had concerns. I was in a tough position of wanting to let mom drive decisions as the parent and seeing how much stress you were causing her parentheses, and also agreeing it would be better for everyone if you were able to support yourself, and thinking that you needed medical help close parentheses, and it being clear you just weren't really able to function very well. Still, I made the wrong call and should have just kept supporting you. I sincerely apologize. I hope you find peace. There's no mention of this article that's coming out tomorrow, and there's no mention of the fact checking that he just went through.
Annie felt that the timing of this email was really telling that for all this time, while Annie was staying in the background, Sam didn't feel any need to apologize. Then, just as she's about to exert a little bit of power over him by complicating his image, he reaches out and invokes their shared Jewish heritage to ask for forgiveness. I asked Annie how she felt about Sam speaking publicly about universal basic income and ending poverty when he hasn't done the same for her.
It was a very big slap in the face. It feels embarrassing to be related to him. It's beyond depressing and heartbreaking and disappointing that someone who I thought had a different moral compass, or who I thought would be there for me when I needed someone and was really sick, I wasn't is I'm going to be creeving in the same way I'm going to be creeving my dad for the rest of my life. I'm going to be creeving Sam for the rest of my life. And the sadness of of someone who saw me in a walking boot and didn't say, how can I help you. It's why I use the term sibling in not brother.
Even though Annie's story is really complicated, I think it's relevant to all of us because when Sam is going around talking about our AI future, he acknowledges that AI could take our jobs and upend society and money as we know it, and he says he'll come up with a solution for us universal basic income. But when he's faced with the messy reality of his own sister, suddenly it's not so simple. In public, he is literally saying that there shouldn't be poverty. Money will be given away to everyone. In private, when Annie asked for help, he didn't come through for her in the way she needed. In the next and final episode, we'll see that even the board of Open AI, the people whose job it was to keep Sam in check, decided they didn't trust him. He had to go, and they needed to take drastic measures to remove him from the seat of power. That's next time on Foundering. Foundering is hosted by me Ellen Hewitt. Sean Wen is our executive producer. Mollie Nugent is our associate producer. Blake Maples is our audio engineer, Mark Million and Vandermain seth Fiegerman, Tom Giles and Molly Schutz are our story editors. We had production help from Jessica Nix and Antonia Mufferetch. Thanks for listening. If you like our show, leave a review, and most importantly, tell your friends. See you next time.