The pop diva told reporters at the Carousel of Hope Ball the she felt "great" while Davis told People magazine a "killer album" was in the works.
Houston and Davis joined Halle Berry at a table at the star-studded gala, which People said raised $70 million for diabetes research.
Houston and her husband, Bobby Brown, filed for divorce earlier this month after 14 stormy years of marriage.
Houston's last album was released in 2002. Her recording heyday was in the late 1980s.