The former couple had a lively conversation, alongside Usher.
A source tells ET that, after they spotted each other, they ended up chatting and it was "totally fine." The source said the Saturday Night Live alum was "a gentleman" and he "complimented her look and style, which she appreciated." The source went on to dish some deets about where they stand now, some nine months after they broke up.
"They both really respect each other and there are zero hard feelings," the source says. "He knows Kim was looking to have fun when they dated, and he was totally fine with it. He also enjoyed their time together."
The source adds that Pete thinks Kim's "a great person" but that "their relationship got to be a little too much for him with the Kanye [West] drama and so much press since he is a chill, low-key guy."
There were several instances where the embattled rapper let his feelings known about Pete and Kim's relationship, and things really reached a boiling point when Kanye dropped a diss track, in which he said he wanted to "beat Pete Davidson's a**."
But the relationship served its purposes, particularly for Kim, with the source telling ET that "it was great for Kim to date someone like Pete after getting out of her relationship with Kanye. It was exactly what she needed at the time. Their chemistry was amazing, he was sweet, and he made her laugh."
Kim and Kanye settled their divorce in November. They share four children -- North, 9, Saint, 7, Chicago, 5, and Psalm, 3. Two months after settling their years-long divorce, Kanye said "I do" to model Bianca Censori.
"She's happy for Kanye and thinks it’s good that he moved on and that someone can care for him," the source says. "She doesn't know his wife super well, but as long as she is a good person and he is happy, Kim is happy and thinks that it is great."
Since splitting up with Pete, the source tells ET that "Kim has been so laid-back about dating, and she is more and more comfortable being single. She is in no rush to meet someone and likes working, being with her kids, and doing her own thing."
"She is open to dating someone who isn’t famous but realizes it could be tough for a guy if he isn’t used to that," the source adds. "Everyone wants to set her up, but she thinks it will happen organically."
In the meantime, the source says Kim is "definitely living her best life and she isn't taking herself too seriously. She has been laughing and making the most out of her experiences. She has amazing energy right now and everyone around her loves it."