Tokyo AI startup under investigation for alleged 4 billion yen sales fraud

Tokyo AI Company Faces Investigation Over Inflated Sales

A Tokyo-listed artificial intelligence firm, Alt Inc., is currently under scrutiny for allegedly inflating its sales figures through fictitious transactions. Sources reveal that Alt reportedly funneled money through collaborators who cycled the funds back by purchasing accounts for its automated meeting transcription service, AI Gijiroku. Many of these accounts were reportedly inactive, casting doubt on the legitimacy of the transactions.

Out of the 6 billion yen ($41.9 million) in sales reported for the fiscal year ending December 2024, approximately 4 billion yen may have been falsely recorded. Some insiders have reportedly admitted to fabricating these figures during interviews with authorities. The questionable sales activities are believed to have started as early as 2021.

Rapid Growth Fueled by AI Gijiroku

Founded in 2014, Alt experienced explosive growth after launching AI Gijiroku in 2020. Sales reportedly surged more than 100-fold within four years, with the transcription service accounting for up to 90% of total sales. An insider suggested that the inflated sales figures helped Alt secure its initial public offering (IPO) on the Tokyo Stock Exchange Growth Market in October 2024.

Regulatory Response and Ongoing Investigation

The Securities and Exchange Surveillance Commission (SESC) initiated an investigation in April 2025 following a whistleblower report. In response, Alt established a third-party committee to review transactions involving partner companies that sold unused AI Gijiroku accounts. The company has acknowledged the possibility that sales were inflated but declined to comment further due to the ongoing investigation.

For sales professionals, this case highlights the importance of transparency and ethical reporting. Inflated numbers may offer short-term gains but can lead to severe legal consequences and damage to reputation.

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