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Not to play down how absolutely terrible I'm sure Musk is as a father, but her mum's also loaded. That would certainly make the decision easier.
But is she "barring significant changes in world financial systems, my descendants could purchase a small nation-state every generation and still likely never have to sell their labor or until the end of their genetic line" wealthy? Gotta remember that Billion with a B is an absurdly large number that is literally beyond human comprehension in anything but an abstract sense by a large margin.
I got more curious, so I did some searching, and I just can't. Turns out Musk has some absurd number of children with several different women. And I only found that out through some pop culture/celebrity worship/exploitation websites I'd rather not have in my search history. I couldn't even find the name or age of the child in question (probably for the best, I wouldn't want my children to go through this, either), though it seems of the three children he had with Grimes, the oldest just turned 4. That's a bit young to even know what disowning is.
Sure, her mom is loaded. But even ignoring the money, she wanted it known in a legal setting and on an official court transcript that she did not consider Elon Musk to be her father. That's quite the statement.