Engadget's unnamed sources say that the project is a split in which Samsung will handle the hardware, while Oculus takes care of the software. It's apparently a tit-for-tat where Samsung gives the guys at Oculus early access to OLED screens, and in exchange Samsung gets early access to the latest Oculus dev software.
So why is Oculus helping out a competitor? According to Engadget, the Samsung headset will have a strong media focus, leaving the Oculus Rift proper room to shake it up in the gaming space. And to further differentiate the pair, Samsung's headset is said to use Galaxy phones for its screen, which would make it a cheaper, if less technically competent way in to the world of virtual reality. Of course, such an approach would also have distinct advantages, like using a camera's rear-facing camera to get glimpses of the outside world.
The whole thing sounds a little weird at first--and it is--but in the wake of Facebook's acquisition of Oculus VR, it makes a lot of sense. Facebook benefits from promoting Oculus as a platform for virtual reality, not just as a headset. And with partners like Samsung, Oculus would instantly have a gigantic user base.
Granted, it's all just rumours for now, but a Samsung-Oculus partnership is just surprising-but-obvious enough that it's likely to be at least somewhat true.