Nvidia (NASDAQ: NVDA) is dominating Advanced Micro Devices (NASDAQ: AMD) in their respective artificial intelligence (AI) offerings. Nvidia grew second-quarter revenue by 102% versus AMD's 18% decline. With how large an opportunity AI is, AMD couldn't afford to sit on the sideline and watch its rival run away with the title. So, it made an acquisition.

On Oct. 10, AMD announced its intention to acquire Nod.ai to better compete with Nvidia. Is this what AMD needs to finally be on a level playing field with Nvidia? Or is this acquisition too little too late? Let's find out.

Nod.ai is an AI software company that specializes in open-source AI technology. With its help, AMD can create software that optimizes its products in an AI setting, which rival Nvidia has been doing for a while. Vamsi Boppana, senior vice president of AMD's Artificial Intelligence Group, said, "The addition of the talented Nod.ai team accelerates our ability to advance open-source compiler technology and enable portable, high-performance AI solutions across the AMD product portfolio."

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Source Fool.com