The expansion of artificial intelligence (AI) has brought about a fundamental transformation in the nature of contemporary conflicts and security threats, extending the battlefield from purely military and physical domains into the realms of cognition, perception, and public opinion. In this context, cognitive warfare has emerged as one of the most significant manifestations of this transformation, providing a platform for the systematic use of AI capabilities to influence mental processes, decision-making, and collective behavior. The strategic competition between the People’s Republic of China and the United States represents a prominent example of this trend, in which AI functions not merely as a technological instrument but as a critical factor in redefining threats and reshaping security balances. This study aims to explain the role of artificial intelligence in cognitive warfare by examining the Sino–American competition in this domain. It argues that AI-enabled cognitive applications, through processes of securitization, are increasingly framed as security threats and thereby exert a tangible impact on the pattern of threat balancing between the two states. Methodologically, the research adopts a descriptive–analytical approach and relies on the analysis of secondary data, including official documents, strategic reports, and credible sources related to the cognitive and technological policies of China and the United States. The findings indicate that both countries seek to employ artificial intelligence in cognitive warfare to shape threat perceptions in line with their respective security interests, although their strategies, priorities, and normative frameworks differ significantly. The article concludes that any attempt to understand Sino–American competition in cognitive warfare without considering the central role of artificial intelligence and its linkage to threat balancing would offer an incomplete picture of contemporary security transformations.