"They are definitely an item," a source told Fox News.
The insider claimed that Gerber's mom, supermodel Cindy Crawford, just wants her 18-year-old daughter to "keep it low-key at this point in the relationship, especially with all the Ariana Grande [Davidson's ex-fiancee] stuff that has happened." The source also pointed to Davidson, 25, and Gerber's "age difference."
"Kaia is having fun and this is all new to her, so of course she would want to see what a relationship with someone like Pete would be like," added the source. "So far, she’s having a blast."
Gerber and Davidson were spotted holding hands on Wednesday at a supermarket in Hillsdale, N.Y., in photographs obtained by Page Six.
The pair have frequently been seen out-and-about together over the last month.
Over the weekend, Davidson and Gerber reportedly attended a podcast event, and last week they dined at the swanky pizza spot, Pizzeria Mozza, in Los Angeles, according to People.
In late October, Davidson -- who recently split from actress Margaret Qualley, 25, nearly a year after his brief engagement to Grande -- was spotted leaving Gerber‘s New York apartment building, Page Six had reported.
At the time, an insider told the outlet that Davidson was there to see Gerber but said the pair was “just friends.”
Rumors of an official romance between Gerber and Davidson grew after Gerber accompanied her mother to the Women’s Guild Cedars-Sinai Annual Luncheon at the Beverly Wilshire Hotel last week while sporting a rose gold necklace with a “P” pendant charm.