Ayala was born in San Juan, Puerto Rico, and was influenced by several musicians in his family, including his father and some of his mother's relatives. During his childhood he practiced singing and focused on lyrical improvisation. Although Ayala first aspired to join the ranks of baseball’s Major Leagues, he abandoned this goal after being involved in an accident—at age seventeen, he was caught in the crossfire of a barrio gun battle and received two bullet wounds. One bullet grazed his arm and the other, from an AK-47, hit him in the leg and left him with a permanent limp. Following this incident he became interested in the underground rap movement, which at the time was in an early organizational stage. He also took more interest in the events that took place in the neighborhood in which he was raised, a public housing project named Villa Kennedy. Early in his career he attempted to imitate the style of Vico C. He went on to emulate other artists in the genre, including DJ Playero, DJ Nelson, and DJ Goldy, taking elements from their styles in order to develop an original style. In doing so, he eventually abandoned the traditional model of rap and became one of the first artists to perform reggaeton. Ayala first recorded with DJ Playero as a featured artist in a production titled Playero 37, which was released in 1992.
His first album, titled No Mercy, was produced in 1995 when Ayala was eighteen years old. The production did not sell well, and he continued his work within the genre for the rest of the decade, eventually forming a duo with Nicky Jam. One of the duo's songs, "Posición", was included in the soundtrack of One Tough Cop, a movie directed by Bruno Barreto, that was released in 1998. Beginning in 2000, Ayala began concentrating more on his solo career, releasing albums produced outside studios. The first production he released was titled El Cartel, featuring elements of the mixtape style. In 2001 El Cartel II was released, a direct sequel to the previous production, and influenced by similar genres.
In 2002 El Cangri.com was released, and became the first album in Ayala's career to sell well outside Puerto Rico, mostly in the United States. The album was produced by VI Music, an independent recording studio in Puerto Rico, and was not supported by a major label. The most successful single from the album was "Latigazo", which received significant play on radio stations in New York and Miami. The album reached #43 on Billboard's Top Latin Albums chart. Following the release of this disc, Ayala performed at the Roberto Clemente Coliseum before 12,000 fans. The following year VI Music produced Los Homerun-es. The album became the leader in sales in Puerto Rico during a year in which several other reggaeton artists released significant productions, including Luny Tune's Mas Flow, Don Omar's The Last Don, and Tego Calderón's El Abayarde. The album's success helped Ayala receive the publicity required for a crossover to the United States market, and marked the last album he released with VI music before signing a contract with Universal.