Yes, the octonion algebra O is nonassociative. But for each division algebra (R,C,H,O) there are associated (and associative) algebras of actions of the algebra on itself. With R and C, because they are commutative and associative, this gives rise to nothing new. But H is noncommutative, so the algebra of all left multiplications of H on itself (HL elements do this: xH) is distinct from multiplications from the right (HR: Hx). Both HL and HR are isomorphic to H, but they are otherwise entirely distinct. And with respect to either the algebra H is a spinor space, and HL and HR are Clifford algebras (Cl(0,2)).
(My introduction to Clifford algebras was Ian Porteous's book Topological Geometry, which has a table of Clifford algebra isomorphisms involving R, C and H. This book also introduced me to the octonions.)
I am not the first person to point out that O can also be viewed as a spinor space (I think Conway and Sloane do so in Sphere Packings). The Clifford algebra in this case is OL, which consists of nested actions that look like this: x(y(...(zO)...)). It turns out you only need to nest to level 3, however. That is, OL consists of multiplicative actions of these forms: xO; x(yO); x(y(zO)). OL is trivially and necessarily associative, and it is isomorphic to the algebra of real 8x8 matrices. So, it it also isomorphic to the Clifford algebra, CL(0,6), which has an 8-dimensional spinor space, which in this context is O itself. And finally, a really cool consequence of nonassociativity is this: OL = OR (isomorphisc, but also the same algebra; this is different from the case of H, where we had isomorphism, but distinct algebras).
Anyway, I've got over 30 years of books and papers going into much deeper detail on all these things. The bottom line is this: the nonassociativity of O is a feature, not a bug, and an amazing feature at that, coming into play in just the perfect way.
O = spinor space; OL = Clifford algebra.