So the product should definitely be $\prod_{1\leq i<j\leq n}(\alpha_j-\alpha_i)$; this makes a difference from what you wrote whenever the number$~\binom n2$ of factors in the product is odd, namely when $n\equiv2$ or $n\equiv3\pmod4$.
For a proof by induction (which starts with the trivial case $n=0$ for which the equation says $1=1$), one can proceed as follows. First subtract the first column from each of the other columns. This makes entry the entry at position $(i+1,j)$ equal to $\alpha_j^i-\alpha_1^i=(\alpha_j-\alpha_1)\sum_{k=0}^{i-1}\alpha_j^{i-1-k}\alpha_1^k$ for $i=0,1,\ldots,n-1$ and $j>1$, which in particular is$~0$ for $i=0$. Developing by the first row, and factoring $\alpha_j-\alpha_1$ out of column $j$ for $j=2,3,\ldots,n$, we see that we will be able to conclude if we can show by induction that
$$
\det\left(\biggl(\sum_{k=0}^{i-1}\alpha_j^{i-1-k}\alpha_1^k\biggr)_{i=1,\ldots,n-1\atop j=2,\ldots,n}\right)=\prod_{2\leq i<j\leq n}(\alpha_j-\alpha_i).
$$
In the matrix of the left hand side, subtract from each row (except from the first row) $\alpha_1$ times the previous row (proceed from bottom to top, so it is an unchanged row that is subtracted each time). This removes precisely the terms with $k>0$ from the summation, and what is left is the determinant of the matrix $(\alpha_j^{i-1})_{i=1,\ldots,n-1\atop j=2,\ldots,n}$, a Vandermonde matrix whose determinant is indeed given by the right hand side according to the induction hypothesis.
Other approaches using induction (notably ones using a linear algebraic interpretation of the matrix) are certainly possible, this is just the first idea that came up for me.