Updated

Ashley Olsen was looking very close with artist George Condo this weekend.

Spies saw the Row designer, 30, and popular painter, 59, “holding hands and snuggling” Sunday at Balthazar. “It was obvious something was going on,” said a source. “It looked like she was dining with her grandpa, but they were holding hands and snuggling.”

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When a Page Six spy saw the pair at the Mercer Hotel in June, Condo’s rep said, “It was simply a business meeting.”

Condo’s wife, Anna, filed for divorce last year.

This article originally appeared in the New York Post's Page Six.