In 2007, he met DJ Khaled outside the office of the WEDR 99 Jamz radio statio]. After Hood gave Khaled an autobiography and his demo tape, Khaled asked Hood to do a freestyle over the instrumental of his song “I’m So Hood” from his second album, We the Best, and later signed Hood to his We the Best Music Group label. Hood was named, along with several others, on the Freshmen of ’09 by XXL magazine.
His first album, Gutta, was released in 2008. Singles included “Cash Flow” featuring T-Pain and Rick Ross, and “Ride” featuring Trey Songz. Hood also released mixtapes called Ace Won’t Fold and All Bets On Ace. He made a guest performance among several rappers on DJ Khaled’s single “Out Here Grindin'”, also featuring Akon, Rick Ross, Plies, Lil Boosie and Trick Daddy, which peaked at number 38 on the Billboard Hot 100. It is from Khaled’s third studio album We Global, and was eventually certified gold by the RIAA. Ace Hood appeared on Wildstyle Radio on WUAG 103.1FM in Greensboro, North Carolina, on September 7, 2008, to promote his album, Gutta, along with DJ Khaled. The album debuted at number 36 on the Billboard 200, selling 25,000 copies its first week.