The room was filled with some of the biggest names in the music industry, from Beyoncé to Sean “Diddy” Combs. But all eyes were focused on one happy duo at Clive Davis’ Jan. 27 pre-Grammy gala in NYC: Jamie Foxx and Katie Holmes. The two have been secretly dating for years and have been occasionally spotted together in recent months, but this was their true public debut as a couple, sitting side by side, laughing, and whispering to each other throughout the night.

There’s a good reason they’re finally stepping out together. The relationship has gotten so serious, Katie and Jamie have decided to have a baby, sources exclusively tell Life & Style. “Jamie and Katie have been talking at great length about having a child together,” says one source. “He’s crazy about her and thinks they’ll have an adorable baby.” They both want to start a family, confirms an insider, “and it’s why they feel it’s time to go public with their love.” Katie’s glowing complexion and hint of a bump at Clive’s party sparked speculation she could even be expecting already. “At 39, Katie can feel her biological clock ticking,” notes the source. “She’s been telling friends that she doesn’t have time to waste!”

Jamie, 50, has wanted to start a family with Katie for a while. A loving father of two daughters from previous relationships, “He told her they would make beautiful children together, and she never disagreed,” the insider reveals. “She just wasn’t ready.” Even as she found herself falling for Jamie, Katie felt “traumatized” by her split from ex-husband Tom Cruise, the source says, and was also wary of Jamie’s reputation as a player.

But over time, she came to trust him. He bonded with Katie’s daughter, Suri, 11, and she spent time with Jamie’s daughters, Corinne, 23, and Annalise, 9. “She’s seen,” says the source, “what an amazing dad he is.” Recently, she’s started dropping pointed hints about the future, the insider says, “telling close friends that Suri is so grown up, and that she really misses having a baby around the house.”

Katie isn’t ready to walk down the aisle with Jamie, though — at least not yet. And Jamie’s fine with waiting on the wedding bells and focusing on starting a family instead. “Jamie keeps envisioning what the baby will look like and whose personality it’ll have,” the source says. “He has always loved kids and is thrilled that he and Katie are finally on the same page.”