Any liquid running thru the pipe will come out the holes. What you have there is called perforated drainage pipe and is made ti drain thru the slits in the pipe.

Some liquid will leak out........but not all. The perforations are not enough to accommodate a heavy water flow and if the pipe is directed at another outlet or drain, most of the run off water will drain there.

Ok! It runs about a foot under the ground along the front of the garage and side and will continue down the hill. My husband is ready to rip out the driveway that we just put in. In your opinion with the water flow not be significant enough through the holes to cause damage to the foundation? Since there is no rock around it I’m sure the holes will eventually fill with dirt?

Should be fine and you are correct without rocks around it it will have the slits blocked with dirt. Like said it is perforated drainage pipe with slits, not like a solid pipe with round holes.

I’d probably replace it with the “correct” or originally intended pipe, especially because, with an asphalt driveway, it’s not that hard to do so. If it was reinforced concrete or meticulously laid pavers, that would be a different story.

Keep an eye on it, but I wouldn't worry.

I dont know where you live, but, I wonder about the water leaking out beneath the asphalt and freezing, and heaving up the driveway. Would that be a problem in your area?