Grande previously dated rapper Mac Miller for almost two years until they officially split in April.
Grande and Davidson, both 24, first publicly confirmed their relationship with a Harry Potter-themed costume snap on Instagram over Memorial Day weekend. "They are not rushing to get married", a source told Us Weekly. "It's nothing they've been hiding".
Recently, both Davidson and Grande went public with their relationship status. The two hit up Robert Pattinson's birthday party on Saturday, June 9, where they "were telling people that they're engaged".
A source close to the music creative told HollywoodLife: "Mac is devastated that Ariana may have become engaged to her new boyfriend, he doesn't want to believe it".
"He is still broken-hearted over their split and he can't imagine how she could move on so quickly, or fall in love already".
Meanwhile, an Us Weekly insider claimed that while the couple are "very in love", they won't start wedding planning any time soon as they look toward having a long engagement.
Previously, Ariana slammed her two-year romance with Mac, as she dubbed the time they spent together as "toxic".
Fans are also convinced a ring Ariana was wearing on that finger during her performance at the 2018 iHeartRadio Wango Tango by AT&T on 2 June is her engagement ring.
Daily Star Online has contacted Ariana and Pete's representatives for comment.