Knight has been booked on a charge of assault with a deadly weapon and is being held at Men's Central Jail. His bail has been set at $65,000. He is also being charged with a misdemeanor driving with a suspended license.
Police are releasing very few details about the case.
Police won't say where the alleged assault happened, only saying that it was at a public venue within L.A. city limits on Wednesday night. The victim is a man, but police did not say what prompted the alleged assault.
"The victim involved in the crime flagged down officers who were in the area and directed them to the Cadillac Escalade," said LAPD Det. Gus Villanueva.
Knight's Escalade has been impounded as part of the investigation.
Knight has had a number of run-ins with the law. He was recently accused of roughing up a rapper known as Yukmouth and stealing about $92,000 worth of jewelry. The rapper later recanted his story.
In August 2008, Knight was arrested on drug and assault charges in Las Vegas. When police arrived on scene, they said Knight was holding a knife standing over his girlfriend and had punched her in the head.
Knight rose to fame in the early 1990s as the co-founder of Death Row Records. The label dominated the rap charts, with hits from Snoop Dogg, Dr. Dre and Tupac Shakur.
Knight served time in prison for violating probation on assault charges stemming from a fight at a Las Vegas hotel in 1996. Hours after the fight, rapper Tupac Shakur was shot and later died.