In a large pot or Dutch oven, heat olive oil over medium heat.

Add stewing beef, chorizo, onions, garlic, and jalapeno pepper.

Brown the meat and vegetables together, stirring often.

While the mixture is browning, add cayenne pepper and chili powder.

Stir well to coat.

Once the meat is browned and the vegetables are softened, add tomato sauce, salt, water, and Mexican beer.

Stir to combine.

Cover and cook on low heat for 30 minutes, stirring occasionally.

Uncover and simmer for an additional 2 hours, stirring occasionally, until the chili thickens and flavors meld together.

Serve hot.