"(Whitney's) been through emotional trauma and everybody's rooting for her," said Davis. "We're going to make a killer album."
The event, hosted by Jay Leno, raised more than $70 million for childhood diabetes.
Houston sat at the main table hosted by Halle Berry, who is a diabetic.
Performers included Usher, Barry Manilow, Babyface, and "American Idol" finalists Katharine McPhee and Jennifer Hudson.
McPhee originally was set to sing her American Idol favorite, "Over The Rainbow," but she reportedly decided to sing Houston's "I Have Nothing" as a tribute to the singer. Houston led a standing ovation after the performance.
Other guests included Warren Beatty, Annette Bening, Brooke Shields, Hilary Duff and Teri Hatcher.
By Judy Faber