An anonymous bidder bought the picture at Sotheby's in New York on Wednesday.
Picasso was only 24-years-old when he depicted a young Parisian boy holding a pipe
It was sold by the family of a former US diplomat who bought the painting in 1950 for $30,000.
The final bid smashed the previous record for most expensive painting set in 1990, a mere $82.5 million for a Vincent Van Gogh.
The price fetched included commission, the hammer price was $93 million.
Shortly afterwards, Manet's Courses au Bois de Boulogne, an 1872 composition showing fashionable spectators watching a
horse race, sold for $26.3 million.
Picasso now has four of the top 10 most expensive paintings sold at auction, ahead of Van Gogh with three.