Drake celebrated his milestone 40th birthday in a big way, taking over New York City with an extravagant bash featuring a surprise performance by the Backstreet Boys, luxury giveaways and massive cash prizes ... TMZ has learned.

Sources at the party tell TMZ ... the rapper hosted more than 400 of his closest friends and family at the exclusive Casa Cipriani in NYC Friday for an unforgettable night, with the iconic boy band taking the stage to entertain the crowd.

We’re told Drake spared no expense when it came to his guests … with attendees treated to luxury giveaways, including designer handbags from Chanel and Hermès.

But the surprises didn’t stop there … Drake even organized a game show where lucky guests had the chance to walk away with cash prizes ranging from tens of thousands of dollars all the way up to a staggering $1 million.BSB