In a large Dutch oven heat olive oil over medium-high heat. Add in red onion, jalapeno, and garlic. Sauté for 3-4 minutes until soft and fragrant. Add in diced tomatoes and green chiles. Mix to combine.
Add in cubed Velveeta cheese, cream cheese, hot sauce, and seasonings. Continue to heat over medium-high heat, stirring frequently until melted, 10-12 minutes. Reduce heat to low to keep warm or serve immediately.
Store leftover dip in an airtight container for 4-5 days.