Is it normal my friend talks to himself?

So I fell asleep in my friend’s room (which I have been doing for awhile) and he doesn’t mind and let’s me stay but one night I woke up to hear him talking to himself and pacing back and forth. He was talking aloud devising a plan on how he is going to get this girl that he likes which is all fine and dandy. While I’m asleep he takes off the cover from me and says “she’s so attractive” note: I’m a female. The female he likes is under a name we will just call her Kim. So after talking about how he was going to talk to Kim and get her to go out with him he begins talking about how attractive I am and how much he wants to have sex with me but knows I don’t want to. ( we used to have sex but we stopped and became more platonic) he expressed that he missed the sex but he’s doing this while all talking to himself and I know because his phone is next to me. To make things weird or worse sometimes he would want sex and I would be too tired and I told him I honestly don’t care if you do it while I’m asleep which he did and I didn’t care. The second night after discovering him talking to himself I went back in his room to fake sleep and see if he talks to himself and he does but this time he has sex with me all while thinking I’m asleep but I’m awake. How do I address this? Do you think he has anything wrong with him?