The longtime friends and collaborators have been "secretly dating for months," a source tells PEOPLE exclusively.
On Wednesday night, the duo showed off their chemistry on stage at the Forum during the second night of her Anti World Tour in Los Angeles.
In the middle of performing their hit song "Work" (which is the first song in 2016 to go multi-platinum three times), Rihanna – whose album #ANTI is also the first album to go multi-platinum twice this year – brought out her man and danced sexily with him, grabbing his jacket and pulling him closer to her. (Meanwhile, Drake's newly released Views sold more than 1 million copies and was streamed on Apple Music more than 250 million times in first week.)
After the concert, Drake, 29, and Rihanna, 28, headed to The Nice Guy to celebrate and were "dancing all night together," says an onlooker. "They were being very affectionate."
Though she told Ellen DeGeneres in February she's "single right now," the source says the singers have been purposely hiding their relationship.
"They have been keeping it a secret because this time around, they want to do it right and keep their relationship private," says the source of the couple, who were rumored to have dated a couple years ago.
"We're not just forcing the story. We have genuine energy between us," he told Zane Lowe earlier this week on Apple Music's OVO Sound Radio. "We do great music together . . . I think [our chemistry is] what makes the records better."
Reps for the two have not commented.