DIDDY AND DRAKE WE DECIDED TO BECOME PARTNERS And We're Gonna Make a Killing

Now we know why Diddy and Drake declared a truce ... they decided peace can be highly profitable for both of them.

We found out the former enemies met at 1:00 AM Monday at Mel's Drive-In in West Hollywood ... just the 2 of them, and of course their bodyguards.

We're told the chat was all about creating a joint venture with both of their names. They kicked around everything from clothing, to jewelry to cigars. They did not zero in on a product line but agreed that it would be mutually beneficial for them to partner.

Now it's clear why Diddy and Drake got on the phone last month to settle their war that erupted over Drake's song, "0 to 100."