In a skillet over medium heat, cook 1 pound ground sausage until browned and cooked through, about 5 minutes.

Drain any excess fat from the skillet to prevent the dip from becoming too oily.

Add 8 ounces of softened cream cheese to the skillet and stir until melted and well combined with the sausage.

Stir in 1 cup shredded cheddar cheese and 1 cup shredded pepper jack cheese until fully melted and creamy.

Mix in 1/2 cup diced tomatoes with green chilies, 1 teaspoon garlic powder, 1 teaspoon onion powder, and season with salt and pepper to taste.

Transfer the mixture to a baking dish and smooth the top evenly.

Bake in a preheated 350°F (175°C) oven for 15-20 minutes, until the dip is bubbly and golden on top.

Remove from the oven and serve warm with chips, crackers, or vegetables.