Schrödinger (NASDAQ: SDGR) and Recursion Pharmaceuticals (NASDAQ: RXRX) are both biotechs that want to use AI to streamline the drug discovery and development process. And that makes them hot stocks in the AI-obsessed market of 2023.

But which business is a better pick, given that the field they share is evolving rapidly and that neither is profitable? Let's weigh the case for each and work it out.

Schrödinger has three ways of making money. First, it sells licenses to its AI-driven software platform, which is supposed to help biopharma businesses discover new leads for therapeutic molecules and thereby reduce their costs and development timelines. That segment brought in $32 million in the first quarter, flat from a year prior. So there isn't exactly a scramble to make use of its technology in isolation, even if it might be useful.

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Source Fool.com