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Edit: A Bad Boy representative responded to me instantly, confirming this story.

SOHH Soul Man has this:

We' got a lot more coming from her including a reaction to hearing that Diddy signed Atlanta based singer Jonelle Monae to Bad Boy Records.... she was little surprised to say the least... video to come.

Janelle Monae (official website) is, according to Wikipedia a "futuristic rock singer". She released an EP album, "Metropolis Suite I of IV: The Chase", the first of a planned four album series. She appeared on both the Big Boi compilation, Got Purp? Vol. II and the soundtrack to Idlewild.

It looks as if this rumor has made rounds, including the Creative Loafing Atlanta blog, who points to a ConcreteLoop.com post that features photos of Diddy attending Monae's album release party in August.

The Creative Loafing Atlanta blog quotes Monae's plublicist, in November, has saying that they have no comment, but they should have an announcement ready soon. It's now almost February and it looks as though no announcement has been made. Also in November, she posted on her MySpace that a career decision was coming soon, but there was no further elaboration. So, really, this is just a rumor for now.

I've contacted both camps for comment.